Why use the Spanish Mortgage Alliance?

The Spanish Mortgage Alliance was established in 2005 and consists of a team of experienced professionals who between them have over 10 years experience in processing Spanish Mortgages. The company is dedicated to providing the highest quality of service and advice to clients wishing to purchase anywhere in Spain. In order to achieve this we have strong links with a wide variety of lenders offering the best range of products in the mortgage market.

Our expertise covers the full spectrum of the property market. We have experience in arranging finance for properties ranging from apartments to villas, first time buyers to investors and for families relocating or purchasing their holiday home. Our aim is to provide top quality advice and the level of service you would expect from a company with our experience.

We recognise that purchasing a property is one of the most important decisions many of our clients will ever make. With this in mind we believe in going the extra mile to ensure that the purchase process is made as simple as possible. We explain the process, assess your financial situation, suggest the best mortgage to meet your requirements, organise a valuation and liaise with all parties involved.

Our customers are safe in the knowledge that we will do the shopping around for the right product for them. Our experienced multilingual administration team will update them at every stage of the process and take them through to completion.

Mortgages and Financial Advice

Having found the property you want to buy whether it be a dream family home, an off plan investment or a place to rent out, what is the best finance option for you?

• Which is the best lender to go to?
• What are the different interest rates?
• What is the maximum I can borrow?
• What documentation do I need?

We understand that buying any property involves a major financial outlay and making the right decision when selecting the best mortgage is vital. The decision can save or cost you thousands. Buying a property in Spain can seem daunting with a different banking system, a different language and a different currency.

However, help is at hand Here at the Spanish Mortgage Alliance, we deal with a wide range of respected financial institutions and understand how best to deal with many of the issues peculiar to the Spanish market. We have assisted many clients with difficult cases and our experience will help you significantly.

What do I need to apply for a mortgage?

Document requirements vary significantly between lenders and products. Our experience allows us to advise you based on what you are able or willing to demonstrate. As a general rule the information below is required:

• Copies of passports
• Proof of income (or sworn declaration for self certification)
• NIE number. ¨Numero de Identidad de Extranjeros” is the identification number for foreigners.
• Work contract (residents only)

There are many various ways to prove income:

How Much can I borrow in Spain?

For non residents the range of products available includes mortgages and Re-Mortgages of up to 80% loan to value or 100% of purchase price. For residents loans up to 90% loan to value or 100% of purchase price. In some instances a property which values up could have a loan available against it which would offer over 100% of purchase price.

The monetary value of the loan is subject to income requirements being met and this can be explained to you by one of our experienced advisors.

What Products are available?

Choosing the right product for your circumstances and requirements is essential, and our experience allows us to advise you of your options. The basic products available include up to 30 years interest only, up to 40 year term*, non status mortgages, multiple purchase loans and bridging loans.

All products are subject to status and lender terms and conditions.

*40 years for residents, 35 years for non residents.

What Interest Rates are available?

The interest rates in Spain are generally lower than the UK, so usually it is more cost effective to use a Spanish mortgage for the majority of your borrowings. We monitor the rates on a daily basis to ensure that we are always able to offer you the best terms available. For the current best rates please ask one of our advisors.

How do I apply for a Spanish mortgage?

Once you have decided on the product to suit you we will require a selection of documentation and information as follows, in order to approach the lender on your behalf:

1. A copy of passports for all applicants (residency card if resident)
   
2. Documentation proving income such as payslips and bank statements (the documents specific to your application will have been discussed with our advisor).
3. Details of your solicitor (we understand that you may not already have established a relationship with a reliable solicitor. As part of our service we are able to recommend professionals on an unbiased basis).
4. Details of any third party involved such as a real estate agent or developer.
5. Details of the property you are purchasing (registry details or the “Nota Simple”).

In most cases clear faxed or scanned and emailed copies of documentation are sufficient.

Do I have to be in Spain to get a mortgage?

No, we work for you. We will organize everything for you and your lawyer can act as your power of attorney if necessary.

Can I re-mortgage to buy further properties?

Yes you can. There are a range of lenders who can help you.

Can I buy multiple properties for investment?

Yes, we have lenders who offer this option, though the loan to value or purchase price available may be affected.

Can I release equity for any purpose?

Yes, there are lenders we work with who can help in this area.

I have a development mortgage already agreed

Most developers arrange finance on the properties they sell. The lender will still require you to prove your income at the time of completion. These mortgages may have a short term or high repayments and we would be pleased to offer you an alternative which may better suit your needs.

Bank Fees

All banks have arrangement fees, we source the most competitive for our clients.

Valuation Fees

Vary from bank to bank although 0.1% is the average

Handling bank accounts from abroad

Many Spanish banks now offer an internet banking service, please ask us for details.

When you take a mortgage the lender will open an account on your behalf. It is therefore not necessary for you to open another bank account in Spain.

How long does it take to get a mortgage?

If all the relevant proofs are available, the lawyer has completed the paperwork and the searches are in order, and the vendor is ready to complete it can take as little as 2 weeks. However it usually takes between 4 to 8 weeks. The larger the loan the longer it usually takes.

Size is important, smaller percentage or purchase price loans are handled locally. Larger percentage loans or high percentage lending usually has to be counter signed by the banks head office which can add two weeks to the transaction.

What are the costs involved?

There are a number of fees associated with purchasing a property in Spain and these will be explained to you on your first consultation. We are able to provide an approximate breakdown of costs; however your lawyer will provide the exact breakdown close to completing your purchase.

Can I get a mortgage quotation before I start looking?

Yes, speak to one of our advisors or contact us on-line for an instant quotation.Thereby determining a budget approximation.

My income is very difficult to prove

We have lenders that require limited or no proof of income

Non status and self certification mortgages are available – although limited to loan to value

How do the lenders work out my exact borrowing limit?

This varies from lender to lender. Speak to one of our consultants to assess your financial situation and they will advise you.

Your Partner in Finance

We work very closely with the real estate industry so we fully understand the relationship involved between all parties. We communicate at all times with lawyers, banks, agents and of course you. It is in everyone´s interest that arranging the finance proceeds smoothly and as quickly as possible.

Once we receive the mortgage offer we will immediately contact you. Faxing you and your lawyer a copy confirming the terms and conditions therein. Providing you are satisfied your lawyer will take over and organize the signing at the notary.

The Alliance is founded on client and business relationships. We have a very strong network of professional advisors. So, if you require independent advice on:

• Foreign exchange
• Legal Services
• Insurance Services
• Accounting Services ( Spanish and Offshore companies )

Customer Service

We maintain contact with you during the transaction and through to completion. As part of our ongoing after sales service we are at your constant disposal to clarify any further queries you may have, even after you have completed on the purchase of your property.

Please speak to one of our advisors, who will be more than happy to answer your questions, or introduce you to someone who can.