e-casas.net

Villa Mortgages.

Whether you intend to obtain a mortgage in Spain or in the country in which you are living is purely a matter of choice, as it really depends on your circumstances. For example, if your new villa is intended solely for holidays at the moment and you have enough equity in your present home, then it is sometimes better for you to raise the money you require with a re-mortgage or loan charged against your existing home.
If however, it is your intention to live here permanantly, then it may be more beneficial to obtain a mortgage on your villa from a Spanish lending institution such as a local bank. As with all banks, their rates do vary so do obtain at least a second quote to examine how much you will pay during the term of the loan.
The reasons why I suggest these methods are simply that if you do not intend to live in Spain and are looking for a holiday villa or investment letting property, then your existing lender may offer you an excellent rate to increase your loan with them, or a new lender may be offering a special fixed rate that suits your budget.


This may not be beneficial to those wishing to sell their existing home and move to Spain, as in most cases with a 'new loan', there may be a high penalty clause for early redemption if you manage to sell your home quickly. In this instance, if you had a mortgage here in Spain on your villa and sold your house quickly, then the equity you raise from the sale of the house could go to repay all or part of the mortgage you have here when it is more advisable to do so.
These details are meant for guidelines only, and in every case, professional advice should be sought.

What will I need for my villa mortgage.

To obtain a mortgage or loan here in Spain is quite simple and can be dealt with quickly (usually 3-4 weeks) providing you have the relevant information with you when you approach the lender.
FIRSTLY, you should ensure that you have the means to repay the loan and proof of this will be required. For those currently working, you will need at least 3 wage slips showing your gross and net earnings as well as the previous years tax statement if at all possible. For those customers who are retired, all that is required is proof of your pensionable income. In both cases, the more income you can show, the better it is for your application.
SECONDLY, you will need your passport to open up an account with the bank, as you will find that practically all bills are paid directly through your bank account.
THIRDLY, we will provide details of the villa to be purchased to your lender and your solicitor.

Villa loan approved, what happens next?

Once you have received approval of the loan for your new villa, you will need to sign the relevant documents with the lender. Then you will be accompanied by the lender to the public notary who then records the loan against your name and your property in favour of the lender. Don't worry, all loans of 3,000€ or more are done in this way and it is quite painless!!
The money is then credited to your account to enable you to continue with the purchase of your new villa.