SPANISH MORTGAGES

Although many of us dream of owning Spanish property there comes a financial reality check before we can make any commitment. One thing is finding the right property but the other is how to finance it? Many of us are concerned about purchasing property in a foreign Country and dealing with large sums of money in a currency we are not completely familiar with.

Fortunately there are lots of financial advisors available that speak your language who can guide you every step of the way. Nowadays buying a property and organising finance is just as simple and straight forward as doing it in our own Country. With attractive Spanish mortgage rates available it has never been a better time to buy.

Due to the successful Spanish property fairs held all over Europe many of us understand the basics of property finance. The larger fairs have free seminars which enable us to speak and hear from some of the top financial experts in the Spanish property market.

Funding the mortgage is one of the most important factors to consider and something the financial institutions will need lots of specific information on. At the moment non-residents can apply for a mortgage up to 80% of the value of the property and 100% for Spanish residents. This is provided that proof of income can be provided to ensure that the monthly mortgage payments can be repaid throughout the period of the mortgage.

The self-employed will need to show proof of the last 2-3 years earnings. They may also want to know if you intend moving to Spain once the property is built and if it is possible to maintain the income levels you have sustained in your home country of residence. This is also something you will need to consider before making such a huge financial commitment.

The financial institutions will also need to know about any debts you have and the equity you have in your current home. Information about savings including the lasts 6-months of bank statements. They will also do a credit check on you to ensure that you do not owe large amounts of money elsewhere.

With Spanish mortgages available to suit many individual circumstances it is a fairly simple procedure to complete an online form in principle. An answer is normally provided within 48-hours.

A new law aimed at regulating the mortgage market is to be introduced in the first quarter of 2007. The new law will reduce the set-up costs associated with mortgages by cutting fees paid to Notaries and for registration. The law will also drop commission charges made by banks for early cancellation of a loan down to 0.5%.

With attractive mortgage rates available it makes sense to find out more information on your current financial situation to see if you really can afford that dream home in Spain.