Steps to request a mortgage loan in Spain


Trying to get a mortgage loan is one of the most typical financial operations among Spaniards. In a country where the greatest percentage of the population wants to buy housing, the procedure in order to request a mortgage is common. Furthermore, at the same time, it is one of the greatest and most complete processes the fact that citizen will face.

When a person provides found a house that matches their interests and chooses to buy it, one of the main methods to deal with the payment is to request a mortgage from a financial institution. In this article we will detail the primary steps that a person who desires to apply for a mortgage loan in Spain are required to follow.

Find all of the possible information and evaluate


The starting point is to gather all the information about the opportunities offered by the banks. A few entities will offer the funding of a percentage of the associated with the appraisal of the home.

In addition to viewing the banking possibilities, it is significant that the citizen requests an easy note of the house that he wants to buy in the Land Registry. In this document, which has a price, you can see a description from the property, the exact location, the state name of the current proprietors of the home, if the property provides charges and other complementary info. With all this information, the resident can be sure of what he or she is going to buy and if the financial institution can put a problem in order to grant him a mortgage given that, in case of any irregularity, the financial institution will paralyze the process.

Mortgage interest rate: set, variable or mixed

Mortgage interest rate: fixed, variable or mixed

Among the different options that are offered designed for mortgage credit one of the huge differences is based on the way to pay back the borrowed money. It could be based on a fixed, variable or even mixed interest rate.

The fixed interest rate implies that you will always pay exactly the same monthly fee during all of the years of your mortgage loan. However, the variable interest rate means that the amount you pay every month may change depending on the standard used, the most common when it comes to mortgage loans.

In addition , mortgage loans offered with a mixed rate of interest can be found, which implies that for some time your monthly installment depends on a fixed interest rate as well as for another period you will pay out based on a variable rate of interest.

The passions we should review: TIN plus APR

The interests we should review: TIN and APR

In short, curiosity is the price we pay out to the bank for the money these are lending us.

The TIN is the Minimal Interest Rate and is the price billed by the bank for financing money. But , to take into account the particular expenses of the operation by itself and the bank fees that could affect the mortgage loan, it is necessary to check out the APR, Annual Equivalent Price. This value will be the efficient cost of the loan.

Commissions and other linked expenses

Commissions and other associated expenses

In addition to the cash needed to buy the chosen house, there are a number of associated costs and commissions that will impact the total cost for the economic operation. There are financial organizations that eliminate some of these commission rates or that assume section of the associated expenses.

According to the Bank of The country of spain, we find the following possible profits or associated expenses:

  • Study charge: the bank can apply an expense to the study or danger analysis of the requested home loan.
  • Opening payment: Similarly, the bank can look for compensation for the administrative processes necessary to formalize the home loan. When mortgages are given for more than € a hundred and fifty, 000, the study fee is roofed in the opening commission.
  • Account commission linked to the mortgage: the bank may require you to definitely have a checking account with the exact same entity to directly deal with the loan payment. This is a cost that the bank might not include directly.
  • Amortization commission. This value is one of the most common among home mortgages and is applied when the resident decides to pay part of the financial debt, or the entire amount lent, before the end of the mortgage term.
  • Notary: the cost of the notary is placed by regulations and the quantity will depend on the amount of the selling transaction.
  • Company: the banks ask the particular agency for the processing associated with certain necessary documentation, like tax settlement, registration confirmation or registration of the action of real estate sale within the Registry.
  • Evaluation: this document establishes the particular economic value of the property, it will probably be decisive to know how much the particular financial entity lends a person. It is a procedure that must be performed by an appraiser accepted and supervised by the Financial institution of Spain.
  • Related products: among the different choices that a banking entity offer to minimize the final cost of the particular loan, it is very common which they offer you to hire other items such as insurance or bank cards.

What Are Informal Debt Agreements?


An informal agreement is an agreement entered into by a debtor with his creditor, without having to undergo the legally binding process that affects his credit rating. Often a debt advisor negotiates these terms to find a mutually beneficial agreement, but a debtor may also decide to contact the debtors and negotiate on their own behalf.

If you are thinking of refining your debt repayments and getting back on track, consider an informal debt agreement as the best option for both parties. We will discuss more informal debt deals and how they can help you put your strengths to the control of your finances. Below is a checklist provided by Dealing With Debt to help you explain the negotiation of new terms for unmanageable debt.

  • Avoid the National List of Personal Insolvency Indices
  • Reduce your repayments
  • Find temporary relief with a waiver
  • Reduce interest rates on debt or offer a repayment amount lower than the original total.
  • Determine if an informal debt agreement is for you


Avoid the National List of Personal Insolvency Indices

personal debt

When entering into a formal debt agreement, a person agrees to have their name listed on the National Personal Insolvency Index (NPII) for 5 years. If a person goes bankrupt, she will stay on this list forever. For a fee, anyone can access the NPII list, which can make future funding very difficult.

An informal debt agreement serves both the debtor and the creditor by giving the debtor the ability to repay the loan under newly negotiated terms, without the penalty of investing in the NPII.


Reduce your repayments

Reduce your repayments

An informal debt agreement produces multiple and flexible results. The key is to find what works for you and the creditor, and keep your name outside the NPII. To do this, you can negotiate a lower repayment and extend the term of the loan.


Find temporary relief with a waiver

debt success

Another option with an informal debt agreement would be to find temporary relief by delaying your repayments for a while. You can show proof of your inability to make repayments and request a delay to delay repayments until your situation improves.


Reduce interest rates on debt or offer a lower payment amount

Reduce interest rates on debt or offer a lower payment amount

Two other viable options for reducing debt are to reduce interest rates on an extended line of credit that you consider impossible to maintain or offer a repayment amount satisfactory to the creditor.


Determine if an informal debt agreement is for you

debt agreement

There are a number of ways out of debt, and an informal debt agreement might be your solution. In order to determine your best options for reducing your debt as quickly as possible, it is worthwhile to contact a debt advisor.

A debt advisor can assess your situation, help you develop a budget plan, and even negotiate with creditors on your behalf.

Take control of your debts today by considering informal debt agreements instead of a formal debt agreement. Think about talking to a debt advisor to assess your financial situation and advise you on your best decision.