Mortgage in Spain
The terms of getting a mortgage in Spain are quite somple. Flexible crediting system allows to not-residents to purchase real estate on beneficial terms – 50% of the total property value with profit margin 4% up to 20 years with the possibility of prior repayment. The period of loan depends on the client age. Mortgage interest rate depends on EURIBOR – refinancing rate.
Considering an application for a mortgage loan banks take into consideration investment attractiveness of the property, initial instalment and paying capacity of the lendee. The lendee gets a mortgage loan against security of the property that he buys. The higher the initial payment is, the easier and faster the process of mortgage formalization will be and there will be more chances to get more favourable mortgage terms. If the lendee gets a mortgage loan for a house that is still in the process of construction, he must formalize deed of land purchase (Escritura) for this land parcel. To take out a loan the potential lendee must confirm his paying capacity.
In this regard he must provide the bank with the following documents:
• foreign passport in effect
• Foreign Identification Number
• contract of employment
• testimonial of employment (with the indication of appointment, value of personal monthly income, period of work in this company and organization name)
• employee earnings certificate for the last year
• bank statements that confirm income;
• references supplied by russian or/and european banks;
• good credit history;
• other documents, that confirm financial sufficiency and paying capacity, for example: title certificate in Russia.
If you work as sole proprietor or you are the owner of a business, you shoukd also provide the following documents:
• Certificate of State Registration of a Legal Entity.
• Balance sheet. Official bookkeeping of two latest fiscal periods, where you indicate the turnover, income, stockholder capital.
If the buyer doesn't want to supply information about all his incomings, it is possible to indicate the income that is three times more than a monthly quota of the further mortgage loan.
The time for consideration of the documents can last from 2 to 4 weeks. After the bank confirms the mortgaging, the notary officer formalizes the contract (Escritura) and registers it in the property register (Registro de la Propiedad). In addition, it is indicsted in the contract that the property is bank pledged, as well as the mortgage volume and loan terms. After credit repayment the contract the sale and purchase agreement is re-register officially.