BeeME

Hi, we are possible moving to Barcelona for a new job. We would like to buy a house and settle for the longer term. What is it like to get a mortgage for someone with a European Passport and a Spanish employment contract. Is there a certain waiting period we should take into account (other then a probationary period per the employment contract? Are there special conditions to a mortgage for expats such as a higher interest, shorter period or a higher percentage of own capital? How long is the typical process? Are there banks that are more favourable to expats? Many thanks!

Moses2013

Once you are resident in Spain the normal conditions apply and here a good link: https://www.idealista.com/en/news/fi...-out-a-spanish
If you are buying before you become resident, then the non resident conditions apply. We own property a bit further North from Barcelona (90km) and have a non resident mortgage, but that means you need a bigger deposit and have less choice. Luckily we are in Ireland and still EU, but Brexit made things more difficult. In any case the people here will recommend to rent before buying.

Loafing Along

Take your time, suggest you rent when you first get there to get to know the region before you buy . Should not be a problem getting a mortgage from a Spanish bank if you have a regular Spanish salary being paid into an account that will be a key factor as well as the percentage of the value you wish to mortgage. Only one issue I had , with Santander , was as we were buying on the coast ( moving from another province ) they wanted to charge a higher interest as they defined it as a "holiday home" , walked into La Caixa, no issues but obviously had to shut Santander and transfer all to La Caixa. Look out for the extras as well, life insurance etc etc . Been a lot in the Spanish press over the last few years about what fees banks legally allowed to charge on mortgages . Remember as well whatever the value of the property there will be about 10% / 12% extra to pay in fees, local taxes and so on.

spainrico

Yes I agree - rent first, make sure the job works out, you like Spain etc. It will be much easier as an established resident and you will have more knowledge and confidence in your decisions.

bfg69bug

Is it an "indefinido" contract with 40 hrs ? and are you going to use the contract as a view to becoming resident ? Without those two things, you dont have much chance of a mortgage, unless you have a chunk in the bank. We are currently looking, we have 2 indefinido 40hr contracts, and we have only been offered €130k max - and we need 20k deposit / fees. Anything "extra" we would have to put in from our savings.

You can look at www.rastreator.es for differences in resident and non resident mortgages - its like go compare / compare the market in the uk.

Moses2013

€130K is not bad and at the end of the day the aim should be to borrow as little as possible. The problems in the past all came from banks handing out money to people and the job/salary I have today could be gone tomorrow. A good guideline is to make sure that unemployment benefits cover your mortgage repayments, or you can still afford it with a minimum wage job.

Mateo55

1. Rent before buy
2. Be really careful with real estate agents (cheating, hidden costs etc.)
3. Check the condition of property: possible water leaks, mold, heating system
4. Forget A Place in the Sun programme, it's rubbish

Alfonsocolli

Hi Mateo
We are looking to buy in Spain
Point 2 of your reply says to be careful of estate agents
Can you please advise me what to look out for
Just in case

johnnyone

Be as sure as you can be that the property is right for you. Combined buying and selling costs come in at around 20%, so an expensive mistake if you find the property is not for you. Do your research fully on the areas you are considering.
Also it is not advisable to use a lawyer recommended by the estate agent. Find one independent of the agency and if you are not fluent in Spanish also one that speaks English.

Mateo55

2. Be really careful with real estate agents (cheating, hidden costs etc.)


Exactly like this!