Mortgage Questions And Answers
Please see below some of the most frequently asked questions about obtaining a mortgage for a Spanish Property.
Question: What information do I need to provide to obtain a decision in principle?
Answer: You will need to provide scanned copies of the following
- Complete the questionnaire
- Your passport (photo page only) for each applicant
- Employed: Last 3 pay-slips and your P60
- Self-employed: tax calculations or company accounts for last two years
- Copies of your Bank statements (last 3 months)
- Credit Report/Score (Experian or similar)
- Copy of your mortgage statement for main residence or rental contract
Question: How much can I borrow?
Answer: Loan to value will depend on the following:
- Maximum of 70% if purchasing a 2nd residence or 80% if purchasing main residence.
- Maximum loan based on purchase price or valuation price, whichever is the lowest.
- It is possible with special promotions to borrow 100%, please contact us for details
Question: What is the maximum age and number of years
Answer: Maximum age is 75. Up to 30 years provided the borrower is not older than 75 at the end of the mortgage. Life Insurance and home insurance will be required.
Question: What are the timescales & processes for the application
Answer: Credit scoring takes up to 5 working days once all the documentation has been received. If you are satisfied with the mortgage offer and wish to proceed, the valuation could be completed within 5 to 7 working days. If the above is correct and no amendments or delays occur, completion could then take a further 7 to 10 working days.
Question: Are mortgages available to 1st time buyers or applicants who currently rent their property in the UK.
Answer: Yes it is possible. The bank looks at affordability, but it does not penalize applicants who are 1st time buyers and who are renting their property in the UK.
Question: Can I let my property - If yes will the new rental income be taken into account when calculating affordability.
Answer: Yes you can rent out your property, but no the future rental income will not be taken in to account for the affordability calculations.
Question: Are there any types of residential property the bank will not allow - due to construction material.
Answer: Yes - wooden constructions or properties without the occupancy certificate in order.
Question: Does a derelict house have to have at least the minimum basic amenities - such as water, electricity, toilet/bathroom, electricity, kitchen, before the bank will lend on that property for renovation purposes.
Answer: Yes, the Bank will always require the habitability/occupancy certificate.
Question: Do I need to be present upon completion, or can a representative act on my behalf with POA.
Answer: POA will be acceptable