Spanish mortgages tend to have major differences to that of Russia and some other countries.This is due to a number of different factors, but the major factor is that Spain has a Notary system and everything regarding Mortgages and property or even personal loans must be signed for at the Notary.
Buying a home, Spanish banks provide the citizens of other countries from 50% to 60% of the mortgage. Banks charge for credit annual 3.5% - 5%.
Mortgage offers customers up to 65 years for a period of 10 to 30 years, the duration depends on the age.
Couples buying a home are taken into account when applying for their total income. In this regard, couples get mortgage loan easier.
It is necessary to show the monetary movement of the previous year on bank account, proving that you get large sums of money and a lots of spending on purchases. The mortgage loan may be denied if the balance in the bank account is in negative or if their are outstanding small loans, and financial problems from the past years.
A positive decision on the mortgageloan will be for the buyer's other asset. These customers are trusted by banks much more than people who do not have any asset.
Before you are given a loan, the bank estimate the amount of the mortgage and the value of the property. This process takes from one to two weeks. The Bank's experts determine the value of the home and on this basis calculates the amount of mortgage loans. An answer to the loan request is achieved within 3-4 weeks.
When a positive decision on mortgage lending is made, the bank transfers the loan to the personal account of the buyer of property to calculate the sell. After purchasing the property owner pays the bank calculated monthly advance amount, including interest.
The bank deducts a certain amount monthly from the account of the buyer. In the absence of a bank account the amount needed for the next payment, the bank pays interest at a higher rate.
If the loan is repaid early, in some banks the borrower is obliged to pay 0.5% - 1% of the early repayment.
Upon payment in full of the loan amount the mortgage ends. This formalized notarial deed and is then secured in the property register.
Calculation of the initial payment on a mortgage in Spain:
40-50% of the purchase price + tax and registration to private ownership, which includes: processing of documents and the opening of the mortgage (notary, the inclusion of real estate in the property registry, checking for real estate debt, real estate valuation, preparation of documents for signing the deed, obtaining NIE , Nota Simple).