MORTGAGES & INDEPENDENT FINANCIAL ADVICE

Despite the current international crises Spanish mortgages are still available to non-residents or a resident who is not a Spanish national, but now the terms and conditions for acceptance are now much more stringent than before, and rightly so. The industry has tightened up its procedures in light of fluctuating interest rates and past over-lending practices.

• Euro mortgages are available on variable interest rates and can be obtained for up to 30 years.
• Banks will charge an initial fee to carry out a bank valuation (tasación bancaria)
• Additional costs involved in arranging a mortgage include: an opening fee, registry and notary. An accurate summary of these fees can be obtained from the lending bank or by through MG Villas.
• Allow between 2 - 3 weeks to arrange your mortgage.

MG Villas will continue to find you the best mortgage package to suit your circumstances and will assist you every step of the way through the process.

You will need proof of income and a valuation of the property carried out by the bank. Non-residents or a resident who is not a Spanish national will normally be offered a 60 % mortgage based on the valuation, lower than in previous years, but can sometimes be a little higher depending on your income and other indicators. Spanish nationals can obtain up to 80% mortgages. We can give you advice on a range of products that would suit your individual circumstances.

We can also arrange for Currency Exchange at a very competitive rate through our affiliate company IFX.

Currency Converter

MG Villas works with a wide range of well-known Spanish and international banks without affiliation or exclusivity, so we are able to shop around for the best offers to pass on to our clients. You are of course free to make enquiries to banks or lending organisations of your choice, but many of our previous customers have benefitted from our strong working relationships with several lenders. Our experienced staff will be delighted to help you with your enquiry.

GUIDE TO BUYING COSTS

When you have chosen your property and have your finances in place then you will need to be aware of the corresponding Buying Costs. The following fees are a guide to what you will need to allow for when you purchase your property.

• 7% Stamp Duty I.V.A. (V.A.T.)
• 1% Notary Fee
• 1% Registry Fee
• 1% Legal work (this can be saved when you use MG Villas in-house financial services as part of our complete package for buyers and sellers and supported by our API status)

It is widely publicised that you need 10% on top of the declared value, and most buyers are aware of this. With this 10% there should be no extra hidden costs. It is also necessary to open a Spanish bank account.

Important information when buying with a mortgage

It is important to remember that when you purchase a property with a mortgage, banks will charge an extra charge of an opening fee which is usually 1%. On top of this you will have a further charge for the notary and registry to inscribe the mortgage.