Custom mortgage

Mortgage in Spain up to the age of 75!

In many cases, you can apply for a mortgage in Spain up to the age of 75, depending on your personal profile, income and the lending criteria of the bank.

If you're planning to buy a property in Spain with mortgage finance, it's important to understand your options from the very beginning.

When you find a property you like, it's natural to want to move quickly. However, if you need a Spanish mortgage, your purchase will be subject to the bank's approval. That's why it's advisable to assess your financial situation before committing to a property, helping you avoid disappointment later on.

To assess your application, the bank will need to review your financial documentation. For this reason, it's a good idea to prepare your proof of income and any other required documents before travelling to Spain, or send them in advance by email. At Chic Estates, we help you approach this process with greater confidence and clarity.

Before applying for a mortgage in Spain, assess your eligibility

Although obtaining finance may seem straightforward during an initial conversation, the bank will only make a decision once it has reviewed your financial documents and assessed your profile as a buyer. If you're applying for a mortgage in Spain, it's important not to make assumptions until you have received a realistic assessment of your eligibility.

Mortgage conditions can also vary depending on the bank, market conditions and your individual circumstances. At Chic Estates, we'll guide you through the process so you can better understand your options and assess the likelihood of approval before focusing on a particular property.

Taking this step in advance allows you to search for a home with greater confidence, save time and make informed decisions before travelling to Spain or progressing with your purchase.

It is also important to decide:

• what percentage of the purchase price you wish to finance;
• how much you can or would like to contribute from your own savings.

Both factors have a direct impact on your mortgage eligibility and the terms the bank may be able to offer.

In addition to reviewing your income, the bank may also assess other aspects of your financial profile. If you are self-employed, it may take into account the stability of your business, your trading history and the industry in which you operate.

Another key factor is your residency status:

• Resident in Spain
• Non-resident in Spain

This distinction is particularly important, as it can affect both the documentation required and the maximum loan-to-value available

If you are not a resident of Spain...

Important points to consider

• Rental income is not usually accepted as your main source of income when applying for a mortgage.
  
• If you already have outstanding loans in your home country, the bank may ask for a certificate from your lender showing your current liabilities.
• Employment income or pension income is generally accepted, and banks usually request bank statements covering the last six months as supporting evidence.
• As a general guide, non-resident buyers may be able to borrow up to 70% of the purchase price. However, this will depend on the bank, the applicant's profile and the type of property being purchased.
• In addition to the purchase price, you should also budget for the associated buying costs. Having sufficient savings available will help ensure a smoother purchasing process.
• In certain specific cases, such as some bank-owned properties, a higher level of finance may be available.

• The bank will also assess your existing financial commitments, so your monthly loan repayments should not represent an excessive proportion of your monthly income.
• Mortgage conditions may differ depending on whether you are buying a completed property or an off-plan home, as these applications are not always assessed in the same way.
• Typical documentation requested by the bank may include:
  • A bank certificate detailing your current loans and liabilities.
  • Your latest tax return or proof of taxable income for the previous year.
  • Recent bank statements.
• If you use a guarantor, that person will also need to provide their financial documentation. In some cases, another property may also be offered as additional security.