Following on from our article last month about how to find your perfect house, Sunset Properties now brings you some information on how to obtain a mortgage – whether it's for your first purchase here or for a re-mortgage on an existing property.

If you need a mortgage here in Spain , the process is pretty straightforward and is similar to that in the UK . You can opt for a Spanish or a UK mortgage depending on which best suits your circumstances. 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 first title deed (delaracion 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 ‘value per square metre' and not the market value or the price you are paying for the property. So be aware that it could be a problem for you if the valuer does not value the house as high as the price you have agreed to pay for it. This might mean that you can't get the mortgage you were hoping for. 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 alleviate the stress wherever we can.

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. 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.

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

The cost of arranging a mortgage is likely to add about 2% to your overall buying costs plus an additional 1% if you use a broker. This could bring your total costs to 12 or 13% of the value of the house – significantly more than in the UK so do bear this in mind. Having said that, mortgage interest rates in Spain are currently lower than in the UK.

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 the bank manager will know the history of the house you want to buy and perhaps the family who previously owned it!

The Halifax is a familiar name to most of us and they have a local office with helpful English speaking staff that we would be more than happy to introduce you to. They offer different types of mortgages, including interest only and repayment options.  There are no charges for money transfers from the UK and this can represent quite a saving for you.

If you' need further advice or would just like an informal chat, don't hesitate to call Denise at Sunset Properties on 618295063.