Manana obviously has many meanings. In the context of mortgages, the Spanish market currently lags behind in terms of the range of lending products available and restrictions on the Loan To Valuation (LTV) and document processing. The mortgage market in the UK is regarded by many as the most advanced market of lending in the world, with applications processed with some level of ease. Having said that, Spain is ever evolving both in terms of the increasing number of financial institutions, (including well known international lenders) and in the products these new institutions are introducing to this competitive market.

Why use a mortgage broker

Our experience has shown that no two lenders will offer the same loan to the same client profile on the same terms. How do you know that you will find the right lender meeting your needs and offering you the best deal

Your priority is your dream home overseas, whether it is for personal or investment purposes. You may already have experienced the minefield of agents selling properties to you. Financing your purchase is likely to be the next logical step.

One conversation with us will begin to put you on the right track, making you aware of the best solution for you and avoid costly indecisions!

With more than 30 lending institutions all offering various mortgages based on varying criteria, it's not always true that the one offering the most competitive rate will meet your actual mortgage needs or match your application criteria.

As mortgage brokers, we constantly review the market place for the best lending terms to meet your needs. In an evolving lenders market, many are prone to changing the goalposts to meet market needs. Our close established relationships with these lenders allow us to be fully informed of the current range of products available and the criteria each lender sets.

How much can I borrow

There are two main determining factors, the property value and your income.

Property Value: There are some similarities to how a property is valued compared to what you may have been used to. The key difference is that a registered valuer is instructed to value the property you are purchasing, whereas you may be accustomed to a surveyor to evaluate the purchase. A valuation, in most cases, is similar to a standard survey report. Lenders do not normally ask for structural reports unless under exceptional cases and usually for construction type loans. Note however, that the valuation and the purchase price can differ significantly. Also bear in mind that purchase costs such as the IVA (equivalent to the VAT), agents/legal fees and furnishings are not used for valuation purposes.

We instruct valuations on your behalf with registered valuers recognised by the lending institutions. The valuation fee you pay will generate your "Tasacion" or valuation report, which is presented directly to the lender identified to meet your needs. The amount you borrow will depend on this report, but is subject to the overall maximum the lender will consider based on your application and type or purpose of the loan itself.

Income: Again, there are some similarities to how income is assessed compared to what you may have been used to. Spanish lenders generally will calculate a ratio of your net disposable income that will be used to repay borrowing. They will take into account any ongoing domestic mortgage(s) and/or any other loans if the purchase is a holiday home. It is a family or joint income purchase then multiple incomes can be used.

CBHD will assess your ability to obtain a loan (and an approximation of the loan amount) from the first stages of discussion. We will then provide you with an Agreement in Principle, subject to the correct documentation being received by us for application purposes.

How many years can I repay over

Traditionally Spanish mortgages were for a period over 5 to 15 years and needed to be completed by the age of 65 or 70. However, institutions are starting to relax more in Spain and terms of up to 30 years are now obtainable.

There is no absolute maximum to the number of applicants. For example if you are in, say, your late 50s but would like a 25 year mortgage, it is possible to add one or more of your independent children or other family members to the mortgage, and the mortgage term can be based on the younger age, either by you being a guarantor, or the second applicants earnings being at the least the same as the primary applicant.

What paperwork is required

Spanish lenders appear to be lovers of every piece of paper available, but remember, they are only trying to protect the interests of their depositors.

Most of the documents required will be readily at hand to a reasonably organised person, or at least readily available.

Can I afford the repayments

Try our Mortgage Calculator (Link to Mortgage Calculator Page). Work out approx 70% of the property purchase and use a rate of 3.5% as a guide to give you an indication of the repayments terms, over a period of your choice up to 30 years (as long as your age plus loan term is no more than 70!)

Example

Mr and Mrs A are looking for a mortgage on a purchase price of €250,000. They are financially sound in respect of their ability to repay a loan of up to 70% of the valuation. Assuming the valuation equals the purchase price (remember this is an example), the loan required is €175,000. A 25 year loan period with current rates at 3.5% will generate a monthly repayment of €800 pcm.

What will it cost me

Lenders will typically charge an opening (or arrangement) fee of 1.0% to 1.5% of the approved loan.

An application will require a valuation to be carried out on instruction by the lender before the application can be considered for a loan. Fees vary by the complexity of the purchase valuation. As we work with the recognised valuers, we will advise you well in advance, of the fee required for your valuation report.

As mortgage brokers, we seek out the best lending arrangement for you. We also follow through on your application and progress, working closely with the lender, the agent, the lawyers and yourself. We will advise you of our fees at the beginning of the whole process based on your specific needs and the complexity of the purchase. Our fee reflects the support provided to you and is only payable when the mortgage is approved.

Any other questions

Through our professional approach in supporting your needs we are here to answer any questions you have in respect of your loan requirements. Our wealth of experience in handling diverse cases allows us the opportunity to address your queries, whatever they may be.

• Obtaining a Mortgage from home
• Purchasing via a Spanish company set up
• Releasing equity in the UK or Spain
• Why not pay all by cash
• 1st year in Spain and self employed
• On a "short-term" employment contract in Spain
• Partner not currently working
• Earnings from a pension only
• Etc, etc, etc