At Mortgage Direct, we understand that buying a property in Spain is a significant step in your life. That’s why we’ve been dedicated since 2006 to making the mortgage in Spain process as smooth and straightforward as possible for international property buyers like you.
Why Choose Mortgage Direct for Your Mortgage in Spain?
- Expertise and Experience: Since 2006, we’ve been the bridge between banks, estate agents, and international buyers in Spain’s dynamic mortgage market.
- Fast Track Approvals: Our long-standing banking contacts can fast-track your mortgage application.
- Exclusive Conditions: We negotiate with various banks to bring you exclusive mortgage conditions not available elsewhere.
- High Approval Rate: With a 98% approval rate, our service comes with a money-back guarantee if the offered terms can’t be achieved.
Your Mortgage in Spain in a simple process
- Calculations of a maximum mortgage you can afford considering your current net income and existing debts
- Free 1 hour consultation
- Recommendation of the best bank based on your financial situation
- Mortgage Pre-approval
- Continued support throughout the process
3 good reasons to have a mortgage pre-approval
1. Know exactly how much you can spend
2. Having a pre-approval helps to negotiate a better purchase price
3. You can sign the reservation contract without stress – the property is yours the mortgage is approved.
What is covered during 1-hour free consultation?
- Banks, criteria and current interest rates
- Valuations and the risks associated
- Purchase contracts – reservation and Arras and the risks associated
- Completion process – FEIN, ACTA and cooling off period
- Answering any questions you might have
Frequently Asked Questions
1. Can I Borrow Up to 80% as a Fiscal Resident?
To be classified as a fiscal resident in Spain, typically, you need to have been paying Spanish income tax before applying. Some banks may consider you a resident with as little as six months’ payslips from a long-term job with a reputable company, while others require at least two annual Spanish tax statements.
2. Are Buy-to-Let Mortgages Available?
Currently, buy-to-let mortgages are not available. While some banks may not penalize you for intending to rent out the property, they do not consider potential rental income in their financial assessments.
3. Do Interest-Only Mortgages Exist in Spain?
Interest-only mortgages are generally not available in Spain. Mortgages typically require repaying the capital with interest from the start. However, for construction mortgages, interest-only payments might be possible for the first one or two years.
4. How is My Ability to Pay Calculated?
Lenders assess your ability to pay by allowing between 30 and 40% of your net monthly income after tax for all worldwide debts, including the new Spanish mortgage. This calculation includes existing loans, mortgages, credit cards, rental payments, alimony, and private school fees.
5. How Long Does the Mortgage Process Take?
The process varies, but typically it takes between 2-3 months, especially if it coincides with the holiday month of August or if you have a complicated profile.
6. Should I Appoint a Lawyer?
Yes, we strongly recommend appointing a lawyer who is registered with the College of Lawyers. They ensure all necessary checks on the property and protect your interests.
7. What are the Costs Involved in the Mortgage and Property Purchase Process?
Costs vary by region. For example, property tax is 10% in Catalonia and Valencia, and 6% in Madrid. Generally, expect to pay around 12-15% of the property price, depending on the region (around 10% in Madrid).
8. What is the Maximum Amount I Can Borrow?
Non-residents can borrow up to 70% of the lower of the valuation or purchase price. Fiscal residents can borrow up to 80%.
9. Why Not Use Local Banks Directly?
Working with us ensures lower rates, higher borrowing levels, and better service. We secure preferential terms due to our trusted relationships with banks and our clients’ low default rates.
10. Can Pensioners Get a Mortgage?
Yes, if 1/3rd of your net monthly pension income can support the new mortgage payment and existing debts. The mortgage usually must be repaid by age 75, although one bank may offer up to age 80 on a case-by-case basis.
11. If I purchase the property with cash will I be able to refinance later on?
Generally, the banks will only consider refinancing for renovation of an existing property or separation of the partners
12. How long is the mortgage pre-approval valid for?
Once the mortgage is approved it´s valid for up to 2 years on provision your financial situation remains the same.
What our customers say about us
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Meet the Mortgage Direct Team – Your Trusted Advisors
At Mortgage Direct, we believe in the power of personal connections. Our team of seasoned mortgage advisors is not just skilled in navigating the Spanish mortgage market; they’re also passionate about helping you realize your dream of owning a property in Spain. Get to know the faces behind our success:
Katherine Walkerdine: Co-founder and driving force, Katherine’s expertise and dedication have shaped Mortgage Direct into a leading mortgage broker in Spain.
Kevin Monger: Co-founder and financial expert, Kevin’s deep understanding of the mortgage landscape ensures you get the best possible deal.
Bozena Brunowska – Senior Mortgage Adviser: Bozena joined Mortgage Direct in 2016, bringing over 20 years of experience from the UK as a Financial Adviser, Mortgage Broker, and Accountant. Fully qualified with CeFa, CeMap, and AAT certifications, she expertly blends her extensive financial knowledge with a deep understanding of the Spanish mortgage market, ensuring clients receive tailored and insightful advice.
Our Dedicated Advisors: A diverse team of 40+ experienced professionals, each bringing a unique blend of skills and insights to guide you through every step of your mortgage journey.
With Mortgage Direct, you’re not just getting a mortgage; you’re gaining a team of allies committed to your success in Spain.
Ready to Start Your Journey?
Let us guide you through every step of securing your mortgage in Spain. With Mortgage Direct, your dream Spanish home is closer than you think.
