How to request a mortgage in Orihuela Costa if I am from another country?
The most common conditions for mortgages for foreigners in our country are similar to those of Spanish citizens, although there are several details that must be taken into account. If you are thinking about ordering a mortgage in Orihuela Costa, we invite you to continue reading this article.
What to keep in mind when applying for a mortgage in Spain when you are a foreigner
The first thing to do is open a current account at a bank based in Spain and where you want to take out the mortgage. There will be variable rate mortgages (based on the Euribor plus a spread) and a fixed rate, which guarantees that the installments are maintained until the contract is finalized. The interest rates for non-residents in Spain are usually higher than those given to residents.
It is important to keep in mind that the borrower’s level of indebtedness can not exceed 30% or 35% of the usual income. The maximum amortization periods range between 20 and 30 years, as long as the applicant’s age does not exceed 70 years before the mortgage expires. The maximum terms for non-residents, usually do not exceed 20 years.
The contribution of real estate guarantees, and personal guarantees may end up favoring the financing conditions. For many Spanish banks, the fact of having properties abroad are not assets that Spanish banks value because of their inaccessibility. Likewise, personal guarantees must be presented by residents in Spain.
The hiring of a mortgage carries with it different types of complementary expenses such as the notary, the registry, the agency and the taxes that must be paid. In this case, these expenses tend to represent between 8% and 18% of the final price of the home. To not forget any data, you need to have the help of a professional to provide the best advice for your customers.