Merlin2010

Hi All.
We are considering buying a property here in Spain when our rental contract runs out next summer.

We have a good lump for a deposit but are wondering what the lending criteria is here?

What proof of income is accepted ?

Accepting that a mortgage valuation also dictates the amount you can borrow on any individual...

Wha are the income multiples used to work out how much you can afford to borrow.

Does our age affect obtaining a mortgage?

Al help much appreciated .

Thank you,

Dave

lesleyandme

Hi Dave,
I had a serious conversation with my bank manager on the subject just the other day.
Deposit is 20%
As I am self employed they need to see my books for income but interestingly UK income can be taken into consideration.
3x income I was told.
And you can have a mortgage up to 80 years of age.
As you are probably aware there are all those little incidental costs which add up.

Eric S

I imagine it varies by bank. But when I checked on it a couple of years ago, I seem to remember that the term of the loan varies depending on age. That is, the older you are the shorter the term would have to be. But I think it only matters if you are closer to 75, rather than closer to 25.

- Eric S.

cricketman

They normally give you an 80% mortgage meaning that you have to pay 20% deposit + 10% taxes/costs

So for a 200k house. They would give you a 160k mortgage and you pay 60k yourself

You can see how difficult it is for young Spanish people to buy a house, they need a big cash deposit!

Merlin2010

Hi,,,yes i can se how difficult it is but it's even worse in UK as the house prices are insane. Thinking about getting my children to buy something here to at least get on ladder somehow.

Thanks for advice.

Regards

Dave

Merlin2010

HI, Thank you for reply, I have income from UK, I can provide wagelsips if thats what they need?

Regards

Dave

cricketman

I know at ING Direct they will only take Spanish declared income into account

Don´t know about the others

Bri and Katee

Don't forget you can also get a euro mortage. This is offered by the Leeds Building Society in the UK via its Gibraltar branch. It allows the purchase of property in Spain or Portugal.