You can generally obtain up to 80% of bank valuation. This is a realistic loan to value and there are some banks that will provide this level of funding. In some circumstances you may find that the lending criteria is limited to 60% loan to value this can be the case for properties bought in the name of a company and properties built on Rustic rather than urbanized land. Most mortgages cannot exceed the amount declared on the title deeds. Whilst valuations do not always reach the purchase price, they do occasionally exceed it.

Mortgage products are predominantly lent at a variable rate of interest and are ?Repayment Mortgages?. There is a limited degree of access to fixed rates and ?Interest Only? products including a ?Flexible Mortgage? plan providing an agreed credit-line facility. ?Fixed rates? are always at a high level of interest, but you can fix for up to 15 years.

Interest rates are usually linked to the yearly ?European Inter Bank Offered Rate? , which can fluctuate each month. Your rate is determined by the Euribor rate on month of completion and the fixed margin above this that the bank is charging, an indication of competitive rates, would be Euribor plus 1%-1.25%.

Your mortgage is re-calculated in general once a year so you can obtain a one-year fix annually. Most banks run redemption penalties for the lifetime of the loan. These average around 1% of the amount redeemed.

Terms range from 5 to 30 years but most lenders will anticipate the mortgage to have finished by the time you are aged 70.

All banks in Spain will charge a one-off set-up fee, usually 1 to 2% of the loan, which will be deducted from your advance.

On top of the set up fees, you will need to allow for Stamp Duty on the loan, which averages 1.8% of lending plus Notary and Treasury fees.

To be comfortable, if you intend to raise finance against your purchase, you should allow 10% of the purchase price to cover ALL costs related to your purchase. Your payments will be in Euros.

Your monthly mortgage payments should not exceed one-third of your proven net income.

There are no ?Guaranteed Non-Status?, ?Self-Certification? or ?Buy-to-let? products available, regardless of the loan size.

The benefits of using a Spanish property as security include:

Lower costs in transfer of Sterling to Euros for the total purchase
Low stable variable rates.