If you need to raise finance to purchase your Spanish property, you can do this either in Spain or in the UK (for residents). Raising funds from UK the is normally done by re-mortgaging an existing property or by taking out a personal loan. In either instance you will need to transfer the funds from a bank account in the UK to your bank account in Spain. Spanish banks offer competitive mortgages with low rates of interest, to both non-residents and residents of Spain.
Typically, the banks will grant up to 70% of their valuation of the property for a term of up to 25 years. Several kinds of mortgages including fixed and variable interest rates or, indeed, a combination of both are on offer and interest-only mortgages are also now being offered by some lenders. You will need to provide documentation for the bank to be able to consider your mortgage application. Typically this will include: 3 months bank statements, 3 months pay slips or accounts if self employed, Income Tax Returns (P60), copies of passport or Residence Card, copy of Title Deed from Property (Nota Simple) If you are buying off plan the developer may already have a mortgage in place, which you can simply take-over (subrogate) on completion, subject to your financial status.
Set up fees for a mortgage from a Spanish bank are normally between 3-4% of the mortgage advance and include Stamp Duty, the bank’s commission, legal, notary and land registry fees. These fees are usually lower if you take over a developer’s mortgage on completion.