Helping clients in French, Spanish and English

Affordability

affordability

We are always asked “How much can I borrow?” Good question!

For Spanish residents, banks usually offer to lend 80% of the purchase price (excluding fees).

For non-residents, the maximum loan to value banks offer at the moment is 70% of the purchase price. The percentage can vary depending on the country in which you reside/declare your taxes. 70% is the maximum but it depends on the strength of your economic profile. More usual is 65%.

It is important to note that banks do not factor in buying costs when buying with a mortgage and so the client needs to budget for these in case. They tend to be around 14-15% of the purchase price and so the total cash requirement is around 40-50% of the purchase price made up of 35% deposit plus costs.

For a personal analysis of what level of finance can be obtained and how we can help you, why not get in touch with us today.

Related articles

Property Plans with tape measure

Buying Off-Plan During Covid-19

Are you considering or have you agreed to purchase an off-plan property prior to the Coronavirus. Many of our clients put a deposit down on an off-plan property before the Coronavirus crisis happened. This is […]

Learn More
Building plans

Mortgage Matters Spain Take Part In Buying Off Plan In Spain Webinar

Have you ever considered buying a new build in Spain as an investment or holiday home? If so, then why not watch last months webinar on “Buying Off Plan In Spain” to really get to […]

Learn More
Lady holding Law scales and sword

Make Sure Your Mortgage Broker Is Fully Regulated In Spain

WARNING! Mortgage brokers need the necessary qualifications to provide financial advice on mortgages. Always make sure your mortgage broker is fully regulated in Spain! Back in June 2019, new Spanish mortgage regulations, were implemented in […]

Learn More
en_GBEnglish