Mortgage in Spain, the points in a row
A Spanish mortgage is not complicated; a bank will soon tell you what is possible.
• The amount you can put in yourself.
• The amount of your fixed income.
• The appraisal value of the property you are going to buy.
The calculation of the interest rate is, as in most of the rest of Europe, based on the European interest rate, called Euribor. This base rate plus a percentage added by the Spanish bank, is the rate that you will pay.
The amount you can put in yourself as a deposit for buying a house in Spain will determine whether you get the mortgage. At least 30% of the purchase price will be needed.
Your fixed income is very important. The rule of thumb is that your income should be 3 times the amount to be paid to the bank. As an example, for a monthly mortgage of 700€, you will need a monthly netto income 2100€.
The appraisal value will also be considered. A bank in Spain is prepared to lend 70% of the appraisal value and no more. before the banking crisis in Spain it was different. Then, they only looked at the appraisal value and you could sometimes borrow up to 100%. Your bank in Spain appraises the property you want to buy. The appraisal costs are at your expense.