August 25, 2010 at 4:04 am #55814GarySFBCNParticipant
I’m an American and I am married to a Spaniard. I am living in the US and plan on moving (mostly) to Barcelona soon. I will be ‘retired’ but as I am under age 60, I may pick up some part-time consulting work in the States until my Social Security starts at age 62.
I’d like to purchase a place now – before my retirement – and I have a few mortgage related questions:
1. What documents will I need to help us qualify for a mortgage in Spain? I am still working so I have adequate income in the US.
2. Are there any banks that I should avoid?
3. I’ve been conditioned to think that a fixed-rate mortgage is better than a variable rate. We are looking for a 20-25 year mortgage. Is there anyone who thinks that a variable-rate mortgage is better? If so, why?
4. Here in the US, most banks allow one to make an extra mortgage payment each year, and that extra payment is 100% applied to the principle, reducing the term of the mortgage. It can be a big drop – a 30 year mortgage can be paid in 22 years by doing this. Is this allowed in Spain?
Thanks for any help.
August 25, 2010 at 9:21 am #100392mariosParticipant
I’m not sure if you would qualify as your age would be 62 therefore how can you get a 20yr mortgage unless possibly your pension would qualify as more than enough to cover the payments,it can be applied to the youngest is applying for a joint mortgage.
August 25, 2010 at 3:38 pm #100398AnonymousParticipant
As far as I am aware some of the bank do mortgages for people such as yourself – I have friends who purchased a couple of years ago and are in their 60s and have a mortgage for their holiday home. One website I found http://www.imsmortgages.com and I found heather helpful – and honest. You might be paying a higher interest rate because of being 60. Good luck hope it all works out.
August 25, 2010 at 4:05 pm #100399GarySFBCNParticipant
Thanks for the responses. I am 56 now. My spouse is 41, so we should be able to get a mortgage for that length of time. But we need my salary to qualify for a decent mortgage. And we plan on a 30-50% ‘down payment’ (depending upon the final purchase price) so that should help.
I’ll check out IMS.
September 7, 2010 at 12:26 pm #100528AnonymousParticipant
Firstly your choice of cities couldn’t be any better, I’ve been living and working in Barcelona for the past 13 years and it’s better than ever.
Regarding your questions, essentially the documents required are the pretty standard the only difference is the bank will need copies of you W2 or 1040. In both cases it will need to be the complete tax return. they all need copies of any other forms of income ID and a credit report from the US.
The only problem with choosing a bank is about find one that is willing to take to time and trouble to assess your case, it being difference from the standard Spanish paperwork and then having a post service that accommodates your needs,
Most mortgages here are variable, fixed mortgage are available but substantially more expensive and less flexible.
partial repayment are allowed in Spain, some banks penalize such payment. this is particularly the case for fixed mortgages.
if you have any questions drop me a line.
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