For non residents the maximum loan-to-value of a mortgage is 75%, which means a deposit of 25% of the purchase price will be needed for borrowing. The legal and arrangement fees are additional and must be paid by the borrower. When Spanish lenders consider your loan application, they will not take into account any potential income from renting out your Spanish property. If you are in full-time employment, the mortgage provider will sanction the loan depending on your income from your last three pay slips and your s60 document. You will need to submit copies of the same as well as any other documents they may require. If you are self-employed, your income will be calculated as your average annual net income over the previous three years. You will require evidence to support this, as you will not be able to obtain a self-certification mortgage. In the past, self-Employed, and also company directors, have found it very difficult to find mortgage lenders who are willing to sanction their loans.

Self-employed applicants can now state their income level on an application form and the lender will not carry out any further checks. This allows the lender to keep his administration costs down. It also allows the borrower to state their total income rather than the figure which is finally presented to the Inland Revenue for taxation purposes. As a general rule, 35% of your net income should be sufficient to cover all existing outgoings and the lender verifies that your total monthly payments to be made should not exceed 35 % of your net monthly disposable income. ‘Outgoings’ that are taken into account are your existing debt and any other regular payments, such as any mortgage repayments at home, rent, personal loans and any other commitments. You may also submit proof of any other secondary investments which will earn you dividends in the future for consideration. Mortgage periods may extend from 10 to 30 years. Once you have decided on your dream home, the bank will send a valuer from its panel of valuers to carry out a survey of your property for mortgage purposes. You must cover this additional cost before the valuation is undertaken.