The Catalan mortgage

In the UK we like to complicate things, in Catalunya it's no different but when it comes to mortgages it's pretty simple, you either turn right or left.

Annuity

By far the most mortgages consist out of a monthly payment that is part interest and part repayment. You pay the same amount each month during the length of the mortgage,
as your monthly payments move along the amount you have to pay decreases, interest on
it will decrease also while the amount of repayment increases.

Interest only

In this case you only pay interest. Banks are not particularly fond of this (after all, you're not paying off on a monthly basis) but as your monthly expenses are lower banks will sometimes let you get away with this as it enables you to borrow more.
Particularly if the bank feels it has enough insurance (collateral, income) it considers the risks limited

At the moment many Spaniards are up to their ears into debt, right now banks don't worry to much as house prices continue to increase however they have become more reluctant in serving out top loans.

Financing from the UK

When you need financing topping over a million euros doors will open in the UK, that is if you've got money. For regular mortals however it's not that easy to get a mortgage. As we have obligations to various institutions in England and Catalunya it's not possible for us to advice you on this.

Need help or an offer?

We can help you (or have you be helped) by a financial supplier in England or Catalunya. Depending on your situation and location we can counsel you on whom to see for advice.
Estate agents that sell you a house will always be able to recommend a good bank but consider that they'll collect provision therefore they'll usually send you to the bank of their preference, whether that's in your best interest or not.

Second opinion

We can also assess whether an offer made could be subject to improvement. With this assessment you can ask for second offer from another party or ask the first party to give you a better deal.

In case you would like us to find you another offer there will be costs involved since we are not a mortgage broker. That's what keeps us unbiased. The charge for an assessment or offer is 200 euros.
If on the basis of the data you provided we are able to provide you with several offers at once we will not charge you more than the 200 euros we just mentioned.

Employees need to turn over the following when applying for a mortgage

Last 3 pay slips
Last income tax returns if applicable
N.I.E. number
Application forms for the mortgage
Copy of your passport
Nota simple

Entrepreneurs need to turn over the following when applying for a mortgage

Tax returns from the last 2 years, estimate of current year (audit certificate)
VAT and income tax returns. Balance sheet, account of profits and losses
N.I.E. number
Application forms for the mortgage
Copy of your passport
Nota simple

Depending on the bank they may ask for extra guarantees and yet, sometimes they're very flexible. If you've been banking at the same bank for several years they'll go the extra mile. Do realize that Catalan banks are sensitive to a friendly word and a good first impression. Being polite and decently dressed will in no way hinder your banking endeavors.

Financing your own land

Before you got to the bank in order to arrange the financing of your land you need to acquire the following items

The deed of the building lot.
The necessary licenses and permits needed to build a house in Catalunya.
The contract you and the builder drew up, and the design of the architect approved of by city hall.

Make sure you consult a legal advisor about information for the building process, building permits, architects and construction plans before you go to talk to the bank.

Never say in hind view: "I just didn't know!"

CatalunyaCasa will enable you to look before you leap and save you from expensive mishaps!

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