Mortgage or re-mortgage your Spanish property with Casahipoteca

Before applying you must read the following very carefully.

Casahipoteca offers straight forward capital and repayment mortgages based on the Euribor. These products are available for purchases as well as re-mortgages. The maximum term is 30 years or up to age 75. The calculations for your monthly installments can be made through our mortgage calculator. Casahipoteca charges a success fee of 2,5% (exclusive 16% IVA) with a minimum of € 3.000,- per case. A fee will only be charged at completion. The only advanced payment will be your valuation and only if instructed by the bank. Including all other costs such as notary, land registry, stamp duty and gestoria, you will pay 7% in costs that will be taken from the loan at completion. Partial repayment is always possible, often without a penalty. Most of our mortgages are offered by Spanish lenders. Our mortgages are available throughout Spain including all the islands.

Valuation

A valuation always needs to be carried out in order to determine the current property value. Our bank partners work with different accredited valuation companies and they will only accept valuations that are no older then 6 months. We have negotiated a fixed valuation fee of € 300,- to be paid up front. That doesn't mean that all houses will be valued for that amount because the standard fees are around 0,1% of the valuation exclusive 16% IVA. So if your house is worth 750.000 euros the valuation fee will be around € 750,- ex IVA. You only pay € 300,- up front and the extra costs will be deducted from the loan at completion.The house prices in Spain have dropped considerably so if you think your house is still worth what it was 2 years ago, you will probably be disappointed by the new valuation. To be on the safe side you need to subtract 20 to 30% of last years value.

Income and affordability

Casahipoteca offers full status mortgages, so you have to come up with all your paperwork and an experian credit report (www.experian.com). The maximum debt to income ratio is 35% (max. 35% of your nett income may be used for capital and repayment).

How to apply for this mortgage?

If all of the above is understood and you agree to pay all of the costs then you can apply through our website and an offer will be made. If the offer doesn't suit you, you can stop the process immediately and you will never pay anything. If you accept the offer you need to sign our service contract . You then you have to send us all your paperwork in digital format (*.jpg, *.pdf, *.doc, *.tif) and we will process your application. If an offer is issued and you agree to that offer, the mortgage process will start. The process can take up to 4 weeks but in general the banks have not a lot of business and the process will be faster.

Make sure that you send us at least the following documents:

In case of a purchase:

o Last three wage slips/ pension statements / other income
o Matching bank statements
o Copy of the identity cards (Passport)
o Credit Report by experian
o Your NIE Number
o Latest tax declaration
o Purchase contract of the property in Spain

In case of a re-mortgage

o Last three wage slips/ pension statements / other income
o Matching bank statements
o Copy of the identity cards (Passport)
o Credit Report by experian
o Copy Escritura of the house (compra/venta)and your N.I.E. number
o Copy of the last Suma/IBI bill
o In case of existing mortgage - last three mortgage statements (late payments are not accepted!!!)
o Outstanding debt confirmation

Mortgages and remortgages

Mortgage Type 1

UK, Irish, French, Dutch, German and Scandinavian residents
70% of valuation (Low Documentation) max loan €500,000
for remortgage purposes bank will pay up to € 3.000,- in costs to take over the loan from another entity

Mortgage Type 2

80% of valuation (Full Status)
(No restrictions on nationality)

Interest rate Euribor + 0.9%        Repayment mortgage
maximum term of 30 years or up to age 75

Partial redemption penalties 0%
Cancellation penalty 0.5%        1st 5 years
Cancellation penalty 0.25%    thereafter

If employed
Last 3 payslips
Last P60
Letter from employer confirming income, type of contract

If self employed
Accountant certificate (Chartered or Certified) confirming income for last 3 years
Last 3 years certified accounts or
Last 3 years tax calculations e.g. (SA302)

Timescale 3 to 4 weeks, apply now