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Getting a Spanish Mortgage

Getting a Spanish Mortgage

So, you’ve watched the numerous programs about seemingly normal people picking up and heading off to purchase property in a completely different country. It all seems wonderful and having visited Spain, you think that you too would love to just pick up and head off to Spain. Alas, after a short period, the excitement wears off and you are stuck with wondering about how exactly you can just change country.

So, you’ve watched the numerous programs about seemingly normal people picking up and heading off to purchase property in a completely different country. It all seems wonderful and having visited Spain, you think that you too would love to just pick up and head off to Spain. Alas, after a short period, the excitement wears off and you are stuck with wondering about how exactly you can just change country. The first thought may be, “From where will I get my mortgage; home or Spain?” Although opting for your home country may seem easier, because it is more familiar, you should perhaps first consider getting your mortgage in Spain. It may turn out not to be as daunting as you thought! Of course, there are some obstacles to overcome before making your dream a reality”¦

First things first, in fact, when moving to Spain whether to buy a property or not, this should be your first step; your NIE number. A NIE number (Numero de Identificación para Extranjeros) is basically an identification number which everyone, Spaniards and foreigners alike, need before purchasing property in Spain. A NIE number is also necessary for registering yourself for medical care and finding work, so this should be your first step. Getting a NIE number should be quite straightforward; you just need to go to the nearest police station, fill out an application form and hand in a recent passport sized photo. Then, after a short (or long) wait, you will have your number.

Once you have your NIE, the next thing to procure is a person fluent in both Spanish and your language. It may be that you have enough grasp on the language yourself to be the translator, but keep in mind that you will be walking into territory far from the normal ground covered by Spanish language courses. There will be a whole new vocabulary involved and misunderstanding some wording in a contract may have dire consequences. Although there are plenty of services available for English speakers wanting to purchase property, you will undoubtedly stumble across situations in which English is not spoken. Also, if you are sticking only to service providers which speak English, your options will be narrowed greatly.

In the pursuit of your mortgage, you may come across plenty of different interest rates. It is in your own best interest to go from bank to bank, looking for the best offer. When you get one offer from a bank, take the offer to another bank and see if they can do any better. If they can, return to the original bank with the improved offer; you may be able to play bank against bank (a rare opportunity), as there is a huge degree of competitiveness between Spanish banks.

{mosbanner right}There are of course numerous documents which you will have to present in order for the mortgage to be processed. Proof of your ability to pay is an obvious one. You may be asked to present payment slips for the last 6 months, a work contract, bank statements for the last 6 months, etc”¦If you are self-employed proof of payment capabilities may be more difficult, as you may have to provide auditor stamped copies of your accounts for the last three years. Other necessary documents may be passport, information about other sources of income, your marital status and information about other debts.

Getting a mortgage in Spain isn’t so difficult after all. In reality, it’s not so different than how it is in any other European country. The main obstacle may be the language and cultural differences. It certainly has its advantages though; low interest rates, favourable write off conditions and the absence of large bank expenses caused by money exchanges between international banks.

Ciara Carruthers works as a content writer for oppSpain www.oppspain.com a company that is specialised in selling off plan properties in Spain.

©Ciara Carruthers