Documentation Required for your Mortgage in Spain
The documentation that may be required in order to apply for your mortgage in Spain varies greatly between lenders. Below is a guide to the type of documentation that may be requested.
1. Mortgage Application Form
Europa Mortgages have a generic mortgage application form that is accepted by all of the lenders that we work with. You may be required to sign or complete a specific bank’s application form at a later date, but for most lenders, and to gain Agreements in Principle, our form is accepted.
2. P60 and 3 Payslips (If you are employed)
If you are employed then this will be the bare minimum requirement for applying for a mortgage in Spain.
3. Tax Return and Accounts (If self-employed)
Some lenders are satisfied with the latest Tax Return and accounts that you have available, although others would like to see the last 3 years Returns. It is appreciated that company accounts and Tax Returns may be up to 18 months out of date. In these cases it will be necessary for your accountant to provide a letter and some provisional numbers for the current year’s activity.
4. Dividend Certificates
If you are self-employed or paid a salary plus dividends, then we will need to justify the additional income either with the dividend certificates or with a letter from your company accountant. Being paid by this method is a little unusual and can take some explaining to the Spanish bank manager, so the provision of paperwork to prove the payments are importatant.
5. Copy of your Passport Photo Page
6. Bank Statements
It is becoming more common to be asked to provide 3 or 6 months worth of personal bank statements when applying for your mortgage in Spain. If you don’t run your account like a model bank customer then you should maybe plan ahead! Overdrafts are OK, but it if you habitually breach your limit then it doesn’t look very good to the Spanish lender. Often they simply want to see your bank statements as further proof that you have a regular income. If you are self employed then the mortgage lender may also ask to see both business and personal account statements.
7. Bank Reference and Employer's Reference
References from your bank manager and employer are being requested less than they used to be. Mortgage lenders in Spain are making their decision based on the figures they can use from your financial data, rather than on the word of your employer and bank manager.
8. Experian or Equifax Reports
Spanish lenders have, over the last few years, started to request that clients provide their UK Experian or Equifax credit reports. Spanish banks are not able to do credit checks on clients in the UK, so they may ask that you provide your own reports. Some lenders ask to see the reports from every client, and other lenders only ask for the reports when the client is applying for a high Loan to Value – i.e. 80%.
You are able to get your credit reports online from Equifax www.equifax.co.uk or Experian www.experian.co.uk . The online reports are OK for obtaining an agreement in principle, but you should also request the hard copy by post, which may be requested at a later date by the Spanish bank.
Note: Your Spanish mortgage will not be registered as a liability on your UK credit report.
9. NIE Number
This will be needed when you complete your mortgage in Spain. For more information, see our section on Spanish NIE numbers.
10. Mortgage Statements
You may be asked to provide proof that you have paid your UK mortgage correctly. You are normally sent an annual statement by your UK mortgage provider. If you don’t have a copy then you can normally request one. These statements are being asked for less frequently as the payment data is recorded and can be seen on your credit report.
11. Rental Agreements
If you have rental properties then it is possible to declare the income and have it taken into account by the Spanish mortgage lender. Particularly in cases where you have provided your credit report, we will need to show that any additional mortgages that you have are covered by your rental income. This may be the provision of copies of your rental agreements, or justification of the income being received into a bank account. If you have a number of properties and have accounts and tax returns then these will always be useful.
12. Marriage and/or Divorce Certificates.
If you have a different surname that you use for your passport and at work, for example, then we will need to justify that the name on your payslips or tax return is actually you, by provision of your marriage certificate. If you are making a mortgage application and you have remarried or if the application includes your children, that have a different surname, then we may need to provide evidence that you have been divorced and remarried.