Mortgage Advice: A second home in Marbella or elsewhere along the Costa del Sol
Costas & Casas is able to help you obtain the best possible mortgage for your second home in Marbella or elsewhere along the Costa del Sol. Even if you do not stand in need of financing, it may be fiscally advantageous to get a mortgage.
Mortgage advice is by its very nature bespoke and tailored to the unique needs and circumstances of the buyer. The same holds true for properties: Each one offers its own set of rules and regulations to follow and items to inspect and check. To avoid the pitfalls, Costas & Casas works in close collaboration with a number of reputable experts – lawyers, tax consultants, and bankers.
Much like elsewhere in Europe, banks in Spain owe their existence in large part to the provision of mortgages. They will gladly help you obtain one. However, the mortgage procedure may differ slightly from the one you’re familiar with. Bank dealings will usually take place in Spanish, thouh some banks do conduct business in English. Costas & Casas will guide you through all procedures in order that you may concentrate on providing the required documents and selecting the mortgage that is right for you.
For non-residents seeking to finance up to 60% of the purchase price or assessed value, obtaining a mortgage is a relatively straightforward procedure. The bank will appoint an independent assessor charged with determining the market value of the property. Any difference between the assessed value and the agreed upon purchase price must be paid by the buyer.
Spanish bank give out mortgages based on your payment capacity. Monthly payments may generally not exceed 35% of disposable income.
Bank offer different types of mortgages such as an interest-only mortgage that postpones payments on the principal a few years down the road. As long as the mortgage is fully paid off before you turn seventy, banks will offer mortgages of up to thirty years.
The most common type of mortgage is an annuity. This type of mortgage carries no obligation to carry a life insurance. However, it is mandatory to take out a home insurance with the mortgage provider as its principal beneficiary.
For private buyers: • Copy of passport • Last few pay slips • Approved tax return • Title deeds, list of assets, overview of outstanding debts • Bank reference
For self-employed buyers: • Copy of passport • Last annual balance and/or accountant’s statement • Approved tax return • Copy of minute book or company registry • Title deeds, list of assets, overview of outstanding debts • Bank reference For Married Couples: • Prenuptial contract (if any)
Finally As mentioned previously, each mortgage application is unique. We will gladly provide you with guidance and advice throughout the process.
Do not hesitate to contact us if you require additional information.