What is needed for the Application:

Documentation concerning the buyers:

  • Passport & NIE (non-resident tax identification number)

  • Last 6 months statements of other mortgages and loans.

Documentation on income:

  • In the case of employees: last 3 payslips. P-60, last income tax return; evidence of other income (if applicable).

  • In the case of self-employed: latest income tax returns (IRPF), accountants references and financial statements, evidence of any other income ( if applicable)

Documentation relating to the purchased property:

  • Note Simple-current extract of the Title Deeds from Property Register.

  • A copy of your reservation or private purchase contract.

  • Purchased Property. Outstanding debt certification of previous mortgages to be redeemed.

  • Latest local annual property tax statement (IBI).

The credit analysis

The two main factors that are taken under consideration from the financial entities:

  • The applicant's ability to pay back the loan, the monthly repayments amounts should be between 30% to 40% of the net monthy incomes.

  • Some Banks now accepting up to 50% of the net monthly income.

  • The loan to value ( LTV ), the percentage represented by the credit with respect to the appraisal value of the property (can change from bank to bank).

The mortgage Deed

  • The financial entities provide a draft copy of the mortgage deed this is a 'binding offer' which is a summary of the main features of the mortgage, including the financial data.

  • Once this has been agreed, then the next step is signing the Mortgage Deed and the Purchase Deed before the Public Notary, once both documents are signed they are subsequently recorded in the Local Property Register.


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