# Mortgage advice Spanish banks



## Factor50 (Jun 29, 2019)

I was hoping I could get a bit of general up to date advice regarding getting a mortgage in Spain as a non resident.

DISCLAIMER
**I am fully aware the current Covid pandemic will have a massive affect going forward and could/will change circumstances dramatically**


Is there any particular bank or broker anyone has had a good experience with in the last few years? Or indeed banks/lenders to stay away from. 

I am aware as a non resident I will only be able to get a maximum loan to value of 70%. And a min deposit of 30%. 

Has the income to debt ratio been in Spain for many years? I see banks will not entertain anyone with 40% or above. This would seem a little low on a personal level as in Ireland (and I'm sure in the UK) most peoples debt which obviously includes their mortgage repayments would be the bulk of their expenditure. Here in Ireland it would nearly be the other way around - 60% "debts" 40% expendable income. 

Is anyone aware how long banks are willing to extend the loan in years, for example the max age you can be on loan repayment. 


I am looking around the south of Spain - Calahonda , and further west towards Marbella. Is there a sign of any price movements already? 

Many thanks for taking the time to read my post.
I would appreciate any advice or input at all on the above.

Regards,

Factor50


----------



## Mark s (Jun 6, 2019)

Hi, we used a broker we found called mortgagedirect who were very helpful. We also initially applied via Bankia for the mortgage but they were very slow, and slightly unhelpful. Our broker then switched us to banco sabadell for the mortgage application and they were brilliant. They explained everything to us, replied to every email quickly and it was all very straight forward.
The broker fee was €1000, I don’t know if this was expensive or the going rate, but again they answered all our queries quickly and sorted any problems we had.
Hope this helps and best of luck.
If I remember rightly the age to extend was 80 years old.
Mark n Taffi


----------



## Overandout (Nov 10, 2012)

Mark s said:


> Hi, we used a broker we found called mortgagedirect who were very helpful. We also initially applied via Bankia for the mortgage but they were very slow, and slightly unhelpful. Our broker then switched us to banco sabadell for the mortgage application and they were brilliant. They explained everything to us, replied to every email quickly and it was all very straight forward.
> The broker fee was €1000, I don’t know if this was expensive or the going rate, but again they answered all our queries quickly and sorted any problems we had.
> Hope this helps and best of luck.
> If I remember rightly the age to extend was 80 years old.
> Mark n Taffi


Brokers are a bit "Marmite" really. I have two mortgages in Spain, one we set up on our own and got a great deal (Bankia, or rather Caja Madrid as it was then), the other 10 years later, we really struggled with and eventually got a broker involved who got considerably better deals than we were able to get (ended up with Deutsche Bank). We paid more than you in fees but the broker fees can be related to the capital loan.
Ultimately it is not rocket science to work out if the fees are worth paying.

I also understand that what might be good for a resident might not be good for a non-resident, so the OP would be better off listening to other non-res opinions on the actual products available.


----------



## NickZ (Jun 26, 2009)

The estate agent I spoke to stated 20% down. 

If the agent really wants to sell the property they have an incentive to help you get a mortgage. Maybe not the best mortgage but in this environment you'd figure the agent would be the first place to ask about a mortgage.


----------



## Factor50 (Jun 29, 2019)

Many thanks for all the replies so far. Regardless of resident or non-resident the information has been extremely helpful.

As I had stated it is totally different to how the system works in my home banking system.

I had been doing some mortgage calculators on line yesterday and was entering some data I suspected would be similar to my own country. For instance you would never get a mortgage into your 80s. That is probably why I was getting a higher income to debt ratio % as I was only assuming I could get a 25 year mortgage as I am mid 30s.

I do think getting a broker sounds like a good idea. I never mind paying a little more money initially which could in turn save you in the long term. Were you recommended someone in particular by friends or family?

Regards,
Factor50


----------



## Mark s (Jun 6, 2019)

Ours was a non resident mortgage by the way and we just searched the web and contacted a lot of brokers which mortgage direct seemed the best suited for us (including price).
We also had a 50% deposit so it was a probable no brainer for the brokers and the bank!
Regards,
Mark n Taffi


----------



## Overandout (Nov 10, 2012)

Factor50 said:


> Many thanks for all the replies so far. Regardless of resident or non-resident the information has been extremely helpful.
> 
> As I had stated it is totally different to how the system works in my home banking system.
> 
> ...


We were recommended a broker by the estate agent, contrary to what NickZ said, we have found that the estate agents here will not get involved in mortgage brokering, although I've got no doubt that the "recommended" broker was not simply an independent choice.
These kind of recommendations go against my instinct really, but we shopped around briefly and came to the conclusion quickly that finding anything better was going to be a tough challenge. We had just moved back from Asia, had our entire wordly possesions in storage and were in a hurry to buy, so went with it. I don't regret it.


----------



## NickZ (Jun 26, 2009)

I didn't mean the broker would provide the mortgage but they are more likely than the average buyer to know who provides mortgage . If you're looking at in an expat area they'll know who offers mortgages to expats. 

Just makes sense to me that people who deal with many sales have more connections.


----------



## Factor50 (Jun 29, 2019)

I had a look at a few brokers online and there is some good information to be fair so thank you for all the advice.

Unfortunately as a non-resident , the max loan of 70% plus 10-13% on taxes mean realistically you would need approx 45% of the mortgage yourself. So having 50% yourself Mark was probably not a million miles off what was required. 

Regardless of how good your future earnings will be which is a little disappointing. It has been a bit of a reality check for sure haha! And certainly highlighted the differences between mortgages at home and in Spain. 

Regards,
Factor 50


----------



## Factor50 (Jun 29, 2019)

Apologies, this could be a silly question however as the Spanish mortgage system seems so different to what I am used to I thought I would ask anyway.

Do the exact same mortgage rules apply (non-resident) for 2nd , 3rd home purchases. For example if you bought a more affordable home initially and after 5 or 10 years wanted to purchase a bigger property , does the max loan to value , deposit , and debt to income ratio restrictions all remain as they were initially? 

Many thanks for all the really informative information so far.

Regards,
Factor50


----------



## Isobella (Oct 16, 2014)

Brokers don't necessarily get you a good deal, they get which is the best deal for them via commission.


----------



## Factor50 (Jun 29, 2019)

I certainly wouldn't disagree @Isobella. However for a non-resident with no Spanish banking experience it would certainly be an option I would not rule out.


----------



## woodpecker9 (Jan 22, 2021)

If you desire to have a mortgage to buy a property is that out of need or choice? Do you have adequate funds to discharge the mortgage at any time, or are you relying on future income? The mortgage payments and time period are guaranteed, is your future income also guaranteed for the same period?


----------

