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00-34 952 58 7572

info@slgproperty.com
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Calle Golondrinas, s/n
29604 Carib Playa - Marbella
Malaga - SPAIN

SLG property combines experience, professionalism and a personal approach in order to make your Spanish property purchase a successful and rewarding one. Are you looking for an apartment, house or villa on the Costa del Sol? Then you have come to the right address!

Mortgages Spain - Costa del Sol Financing

Steps for an application process

We use the following method for a smooth course towards a funding application: 

1. Hypothienda will make an enventory of the financial position and verify the feasibility
2. At a positive result Hypotienda will draw up a written mortgage proposal based on your wishes. 
3. If you agree to the mortgage proposal, we will ask you for income and house details so an official approval of the ​bank can be received. 
4. As soon as the approval is received from the bank, we can give order to value the property. 
5. The bank will give the final binding offer. 
6. We will make an appointment with the notary for the mortgage certificate.

Which documents do you need for a mortgage application?

If you want to arrange a loan in Spain, you must be able to present the following documents:

Usual costs for mortgage settlement

The total cost for the establishment of a mortgage on a Spanish property is approximately 3.5% of the mortgage amount (subject to the number of lenders). Hypotienda guides you in the whole process of obtaining a mortgage or insurance in Spain

Fixed or floating rate? And what is Euribor?

Financing in Spain is largely based on a variable Euribor rate. Euribor is the rate at which European banks lend to each other. The height of the Euribor rate mainly depends on the economic conditions such as the growth of the economy and the level of inflation.

In the financial world The Euribor interest is also used for determining interest rates, among other mortgages. Spanish banks often work with the 12-month Euribor. Each year the mortgage rent gets determined to a mortgage in Spane by the position of the 12 - month Euribor. On 22 October 2009, the 12-month Euribor stood at 1.25%.

You can simply say that the Euribor is the cost price and on top of the cost price is a margin for risk and profit. The margins vary by bank and are generally between 0.95% to 1.5%.

In addition to the variable Euribor interest, fixed rates are also offered by some banks. Short fixed interest rates and long fixed rates are offered. You can personally contact Hypotiende for the level of rates.

Interest-only loan

There are still opportunities to finance your Spanish property on the basis of an interest-only mortgage. This can be up to 60% of the purchase price or appraised value.

Examples of other mortgage products:

Make sure you are well advised about which bank and mortgage product is most suitable for you. In advance, we are able to calculate whether the income criteria of a bank applies to you for a suitable mortgage.