The process of registration of the transaction on acquisition of mortgage real estate will take about 2-3 months. Time to consider applications for a mortgage loan - up to one and a half months. Previously, the application was processed within three weeks.
Basic questions about mortgages:
- The term of credit from 5 to 25 years
- Mortgage value: 50-68%
- Loan Rate 2.5-4.5%
On what mortgage conditions depend:
- Work experience
- Official income
- Age
When buying a property in Spain with a mortgage, of course, you need to collect the necessary documents. If you are a non-resident of Spain, then this article will be useful to you: in it we have considered the features of registration of mortgage in Spain for non-residents.
The question of what mortgage rate in Spain is more profitable, arises increasingly among those who plan to get a mortgage in Spain in 2020, especially in light of the fact that the index Euríbor for 12 months continues to decline and has already reached a historical minimum.
Euríbor went down sharply in March 2019, ending almost a year of rises, which brought it closer to 0%. The decline has been particularly marked in the past few weeks, bringing the Euríbor rate to a historic low.
Is it really worth betting on a mortgage with a variable rate in this situation? According to market experts, in particular - Javier Linez, head of the operational department of mortgage portal idealista (idealista/hipotecas), an ideal mortgage does not exist, because everything depends on the specific situation and the financial capacity of each potential mortgage holder.
Read more in this article.
According to many real estate market experts, the past year 2019 will go down in history as one of the most successful for the registration of mortgages in Spain. Increased consumer protection through a new mortgage law, which came into force in June last year, as well as a continuous reduction in the cost of borrowing from banks in connection with the beginning of the so-called "war of prices" have created ideal conditions for buying property in the mortgage - conditions that are unlikely to repeat soon.
The average interest rate on mortgage loans in 2019, according to October 2019, was 2.5% (2.17% - with differentiated payments, 3.02% - with a fixed rate). The average term of the mortgage loan was equal to 24 years.
However, the situation is beginning to change: after a long period of declining prices, some banks have decided to change the strategy. Thus, Bankia, Sabadell, BBVA, Abanca, Bankinter, Openbank, Liberbank and ING plan to raise the cost of fixed mortgage plans and some mortgages with differentiated payments.
Read more in this article.
The procedure for obtaining a mortgage in Spain is the same for all types of real estate.
All major banks in Spain provide mortgage services, but all of them offer different conditions, which may be more or less beneficial to the buyer depending on his legal status (resident/non-resident of Spain), citizenship, age, financial possibilities, chosen property, etc. In any case, to formalize a mortgage in Spain, you need to contact an experienced specialist who will find a mortgage loan for you on the most favorable terms, will help you properly draw up and submit a package of documents, in this case, the probability of approval of the mortgage at the level of the bank will approach 100%.
In general, in Spain, age is not a determining factor in the decision to grant a mortgage, however, there are certain age limits. Most banks set this limit at 75 years. That is, if you are 50 and want to take out a mortgage, the maximum loan term is 25 years. At 60, you can count on a mortgage for no more than 15 years and so on.
