How much can I afford to borrow?

It is important to establish this before you make an offer on the property to save wasting time and to avoid disappointment. In fact, any offer on a property shall be made subject to approval of mortgage in order to avoiding loosing the deposit lodged.

Most lenders work on income multiples in determining how much you can borrow. As a rule of thumb, lenders in Spain will be looking for earnings per month at least three times that of the monthly repayment. Additional income such as overtime, bonuses or commission, depending on their permanency and regularity, may also be taken into account.

Enhanced multiples are more frequently available to those expecting a good career progression in the near future or those who have a good record of maintaining credit in the past and the amount you can borrow may depend from lender to lender.

Another factor which has considerable weight in approving the proposed loan is the residence for tax purposes status. A non-resident is obviously buying a holiday property which is not his real home. Therefore, payment default is likely to occur in the spanish property sooner than in other financed item abroad. For this reason, banks tend to lend a smaller percentage of the value of the property to non-residents, although some banks are dismissing these risks and lending up to 80% of the value.

The mortgage-centre calculator enables you to obtain the repayment sum on a proposed mortgage. Check what capital can you qualify for using this facility.