DESCRIPTION

This service is intended for :

  • When you want to buy a property and need a mortgage because you can´t or don´t want to pay in cash.
  • When you want a mortgage to obtain funds for another investment.

RODAS CONSULTING SL is a independent mortgage brokerage, and we also arrange finance for non residents buying or remortgaging in Spain.
We have good working relationship with all the major spanish bank and can offer you the best possible mortgage to suit your needs.

What does it include?

This service includes the following:

  • Choose the best bank, according with your particular terms and conditions.
  • Negotiate the best conditions with the major banks in Spain
  • Advice during all the process.
  • Arrangement of the survey of your property ( this has a cost of around of 300 euros, paid directly to the surveying company)
  • Forwading of the Binding Offer provided by the bank.
  • Open your bank account.

About the documents that you have to provide us for each person:

IF YOU ARE EMPLOYED:

  1. Last 3 salary slips.
  2. Last income tax return (p60 in U.K.)
  3. Copy of passports or Resident Permit
  4. Copy of NIE number
  5. Copies of current bank statements.

IF YOU ARE SELF-EMPLOYED:

  1. Last Income Tax declaration
  2. Copy of the accounts for the last 2 years.
  3. Copy of passports or Resident Permit
  4. Copy of NIE number
  5. Chartered accountants company report, confirming your annual personal drawings from the company.

1. What is a Mortgage?

1) Introducing

The mortgage is a contract between lender and borrower to assure the borrower will repay the debt, otherwise he will lose the property pledged. On mortgaging a property, the loan is secured on the property.

  • Mortgages must be formalized in a public deed of mortgage before a Public Notary
  • The property must be registered at the Property Registry with the name of the owners whom the mortgage is given to.
  • The mortgage shall also be registered at the Property Registry to evidence that it is a preferential charge in the property. A non-registered mortgage is an ordinary loan and therefore does not constitute a preferential charge on the property.

2) The mortgage Interest rates

  • Fixed rate mortgage: the interest rate is fixed at the start of the mortgage. The periodic amount for the payment of principal and interest will not change during the term of the mortgage. Keep in mind that with this type of interest we are aware of the amounts we will be paying until the mortgage term is finished, however, we don’t know whether the interest rate level will be reduced in the market or not.
  • Variable interest mortgage: The interest rate on your mortgage will be adjusted up or down according to current interest rate levels. The periodic amount for your principal and interest payment will go up or down with these rate changes depending on the index set chosen (such as MIBOR).
  • The initial interest will be initially lower. The banks normally use this tool to make the mortgage offer more attractive, later on this interest may convert into an excessively high interest

3) Costs and legal fees

If you intend to mortgage a second hand property, be aware that you should face costs as follows:

  • Valuation of the property will be between EUROS 150-200
  • Request of extract (Nota Simple) issued by the Spanish Property Registry, which shows the latest recorded details of any charges on the property.
  • Bank mortgage opening fee: it shall be paid when signing the deed. This fee varies depending of the banks(between 1% and 1’5%)
  • Stamp duty, (Impuesto de Actos Jurídicos Documentados) 0.5%: It must be paid when a notarial document is signed.
  • Notary and Registry: These fees vary depending on the guaranteed capital of the mortgage (Between 900-1000 Euros)
  • Insurance: The banks normally require the borrower to contract, at least, a fire insurance to protect its interest until the loan is repaid. The life insurance or fire insurance will cover the amount of the mortgage. The insurance fee must be paid at the moment of the deed signature (more or less 300 Euros.)

2. Getting a mortgage in Spain

The mortgage is the standard way to finance a property purchase in case you do not have the full amount of the purchasing price at the moment of the signature of the title deed in front of the Spanish Notary.

The mortgage is a contract between lender and borrower to assure the borrower will refund the debt (price of the mortgage); if the borrower does not repay the debt, he will lose the property pledged.

The mortgage will be registered at the Spanish Property Registry (Registro de la Propiedad) to evidence that is the preferential charge in the property. A non registered mortgage is an ordinary loan and therefore does not constitute a preferential charge on the property.

Like most aspects of property purchase in Spain, your Abogado (Spanish Solicitor) can obtain a mortgage for you; howewer he will probably be dealing with one bank and one sort of mortgage.

If the property that you want is already mortgaged, you can do either of two operations: the subrogation and the novation of the mortgage.

THE NOVATION: In this case you accept the existing mortgage and renegotiate with the lender the better conditions.

THE SUBROGATION: In this case yo change the actual lender for another and obtain a new mortgage loan on the property.