You will have seen that some of the property descriptions on our website state that ‘it may be possible to apply for a mortgage on this property'. This means that, based on the information we have from the seller, it is likely that this property meets the lending criteria set by the banks. Whilst it used to be the case that a property had to have had a registered (at the land registry) title deed or escritura for 2 years or more but now some banks are relaxing this rule. On new build villas, as long as the land has the registered title deed and the house has the relevant building permission and approval (declaracion de obra nueva), the banks will consider a mortgage.

Before the bank can make any decision about your application, the property will have to be valued by the bank valuer (tasador), who will use a set ‘value per square metre' and not the market value or the price you are paying for the property. You will just need to be aware of this when you are calculating the level of mortgage you are going to need to enable you to buy. Sunset Properties always assists its clients through this process and accompanies the valuer when he goes to the property. We do our best to help things along and will keep you informed of progress at all times.

Spanish banks will generally lend 60% to 70% of the value of the property and will require the mortgage to be fully repaid by the age of 70, normally over a period of 5, 10 or 15 years (but see also information relating to the Halifax below) . Requirements regarding eligibility for a mortgage are much the same here as in the UK in that the lender will need proof of income and regular outgoings and will look at these in relation to the loan you're applying for.

The cost of arranging a mortgage is likely to add about 2% to your overall buying costs. This could bring your total costs to around 12% of the value of the house which is significantly more than in the UK so do bear this in mind.

It is worth noting that if the house you are buying already has a mortgage attached to it, then it is sometimes possible to transfer the existing mortgage from the seller to yourself. This might then reduce the set up costs for you.

Although using a mortgage broker can cost more in the outset (usually 1% of the mortgage you're applying for, bringing your total buying costs to as much as 13%), they can be good at finding the best mortgage deal for your situation and may therefore save you money in the longer term.

As for finding your own mortgage provider, it may well be worth dropping in to your local bank to speak to the manager. There will always be someone who speaks English and often in small communities the bank manager will know the history of the house you want to buy.

• minimum loan of 50,000 euros and maximum loan of 1,800,000 euros
• up to 40 year mortgage term with an age limit of 80 years
• no early redemption fee
• 1% set up fee
• valuation fee – 380 euros up to 400,000 euro mortgage value

• have same features as the repayment mortgage although the interest rate is slightly higher

• these are similar to products offered in the UK where your debts (mortgage and others) are managed in one account along with you assets i.e. savings and income. This increases your financial flexibility and can reduce the amount of interest you pay on your mortgage overall.

• available to home owners
• minimum loan of 100,000 euros and maximum loan of 1,000,000 euros
• loan up to 50-60% of the value of the completed work
• 5-30 year mortgage term with an age limit of 70 years
• 1% set up fee
• early redemption charges apply

The Halifax does not charge for money transfers from the UK and this can represent quite a saving for you. If you would like to talk to them about your particular circumstance please call us and we will make an appointment for you.