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Can I just advise anyone requiring a mortgage for their new property to get cracking.  I cannot talk about taking the builder's mortgage but if your are getting one through a mortgage adviser then it does take quite some time.  You will need:

3 months worth of last three months bank statements either joint ones or one for each mortgage applicant
3 months worth of salary slips for each applicant
P60s for each applicant
Copy of passports for each applicant
NIE numbers if you have them for each applicant
credit reports (can be got free from experian and don't forget to cancel your credit card after you get the report) for each applicant.

I would advise scanning and emailing everything as the company we dealt with did not seem to receive our faxes even though the fax machine said they were sent.

The bank will have to do a valuation on the property and the report can take up to a week and PW have certain days they allow the valuations to take place.

Its much more time consuming than in the UK

I can certainly confirm that the mortgage application process is taking longer now and this is really due to the lenders tightening their criteria and considering very carefully who they want to lend to! On average it is taking 48 hours to get a Decision in Principal; 1 week to get an offer (based on supporting documentation) and once the valuation has been instructed it can take 10-12 days to get the report. Based on this the formal binding offer will then be issued. I would advise any one seeking a mortgage apart from the developers to allow up to 8 weeks, to be comfortable and avoid stress!!!

The documents Linda has listed below are correct but not exhaustive, many lenders also require a letter of reference from your employer AND your bank. For self employed you will need to supply tax returns and accounts, and in some cases an accountants certificate.   

Hope above helps,
 

Sorry I forgot to add the letter from each employer stating your job description, how  long you have worked for them and how much you earn.  I would actually say that 12 weeks is more comfortable.

Linda

Hi Linda,

My experience is that 8 weeks is resonably sufficient; as long as your mortgage adviser is co ordinating everything in a timely manner and of course the client supplies the documentation as a whole!   How long did your process take? or is it still ongoing?


 

Sharon

All things being equal we will eventually complete on 11th August.  We were originally given a date of 1st July but the mortgage and habitation certificate were not in place.

We started the process months ago but did not know exactly what would be required by the banks and just drip fed the information required when in fact had we known exactly what would be required we could have sent it altogether.  This is why I put this post on the Thread as I would not like others to go through the stress we have had.  Forewarned is forearmed!!

Linda

Hi Linda,

I think that is very good advice and it seems you have had a very time consuming process! You mentioned you used a mortgage adviser, did they not confirm the documents you needed to supply and the fact that the lender would not look at an application until they were in receipt of all the documentation?

I wish you all the very best for your Aug 11 completion and of course for the future!
 

Thanks Sharon

I think with the fact that there are three of us involved (Sister, brother-in-law and myself and we don't live in the same area) it drew the process out somewhat as I was relaying to them what was require and they were having to send stuff to me or use the library to fax stuff at an extortionate rate and they the mortgage advisor not receiving the faxes delayed things somewhat.

We ended up buying a new scanner (I had one with my old computer but was'nt connected to the internet - long story) just to make sure they received everything in the end.


You live and learn.

Is anyone taken the builders mortgage, ours is with Banco Popular, we are finding it difficult to contact them and arrange, is anyone else experiencing this problem.

Tom & Jane

 

Hi Tom & Jane

Our Builders Mortgage is supposed to be with CAJAMURCIA

We have tried on numerous occasions over resent months to obtain information on the builders mortgage from them all without success.

We have now given up and applied for the mortgage with Banco Halifax Hispania, don’t know if they are better or worse than any of the other alternatives but very easy to do application from UK, though Halifax HQ and local Halifax branch.

Phil

 

Hi 

We have jsut completed on Jardins 10 and our mortgage is with Barclays Bank at a rate of 0.75% above Eurobor.  There was a requirement to take the insurance with this but this also included contents (£10,000) euros and cost around 157 euros which we did'nt think was too bad.

Linda

it is very common for developer mortgage details to be advised at a very late stage and this obviously makes it difficult to arrange an alternative option should it not suit!   

Caja Murcia offer 70% at Euribor + 1.5 on a Repayment basis.  Halifax rates are also high and they go to a maximum of 60% LTV and a maximum of 5 years on Interest Only.

Hope above helps,


Congratulations on your completion Linda!!  : )