The Naked Agent Spain

For those of you planning to take out a mortgage in Spain, here is a list of the documents you will need to present to your mortgage broker or bank:

People in Employment
1) ID / DNI (or passport & NIE for non-redisents)
2) Copy of Employment contract stating that you are in full-time employment and confirming your earnings
3) Copy of last 3 wage slips
4) Copy of your last tax return (P60 in UK, P7 in Gibraltar, and Declaracion de la Renta in Spain)
5) Last 6 months (or even up to 12 months) bank statements showing a 'healthy' balance and proof your wages are being paid into your account
6) Vida Laboral (Spanish residents only)
7) Copy of Experian Report (not always necessary, but most banks will ask for it if you are buyer from the UK)
8) Up-to-date Nota Simpe for the property you are planning to buy

Self-Employed
1) ID / DNI (or passport & NIE for non-residents)
2) Ideally at least 2 years of audited accounts for your company
3) Official Letter from your Chartered accountant confirming your income, drawings, and divendends
4) Latest tax return
5) Copy of your autonomo receipts (residents only)
6) Last 6 months (or even up to 12 months) bank statements showing a 'healthy' balance and proof your wages are being paid into your account - ideally you can show your company statements and your own personal bank statements
7) Experian report (as above)
8) Up-to-date Nota Simpe for the property you are planning to buy

The main objective is to provide the bank with clear picture of your financial status and your affordability, so it is better to collate all your documents and then had them in one go, rather than bit by bit.  

For more information on the buying and mortgage process you should get a copy of the ebook: The Naked Agent: Your Stripped-Down Guide to Buying a Property and Getting a Mortgage in Spain

Remember banks will typically lend you a mortgage with payments up to about 1/3 of your net monthly income

Enjoy the rest of the weekend

Banks in Spain tend to have one set of conditions for residents, and another for non-residents.  For non-residents, Spanish mortgages are proving a hard task, as some banks are starting to reduce their lending amount (Loan to value), down form 70% or 80% to 60%.  Interest rates seem to be hovering at 1% plus over Euribor, although some banks for non-residents will offer 0.75% over Euribor.

However, for those of you who are resident in Spain and contemplating buying, now may not be a bad time to think about securing a better mortgage rate with the banks. or remortgaging your existing mortgage.   Providing you are good candidate for a mortgage (ie: you have all the right paperwork, and have decent enough lump sum to put in to the purchase (20% to 30%)) , you should be able to secure good rate (even as good as Euribor +0.31%?!) for the long term.   There is a huge saving over the entire life of your mortgage to be made from having a low margin mortgage rate over the Euribor, eg compare Euribor + 1.25% to a low rate of Euribor +0.45%,  I am not just referring to the next two years, but for the next 10 to 20 years.  So while your actual monthly payments may be high now, if you take a long term view, securing a better rate today, will definitely help you in the future, especially if interest rates start to fall.  Have a play with with our mortgage calculator, and type in different interest rates using the Euribor figure on our website.

Naked Agent Tip: Providing you are in a comfortable financial position, if you can lock yourself into long term mortgage with a low margin over the Euribor, you will save yourself literally thousands of pounds over the life of the mortgage.   Negoatiate hard with the banks and see who will give you the best deal.