Mortgage Application Requirements
While each bank may have slightly different information requirements for the successful completion of a Mallorca mortgage application, as a rule of thumb the following will be needed:
- Copy of passport
- Proof of address (credit card or utility bill etc)
- 3 months bank statements
- If you are employed - P60 and 3 months pay slips
- If you are self employed - · years certified accounts and / or Accountants Certificate
All mortgages are of course subject to status. It is normal in Spain and Mallorca to use an "affordability" measure based on the loan repayments not exceeding around 40% of net montly income rather than the "income multiple" approach customary in the UK. A number of UK banks do use income multiples and where these are applied the norm is along the following lines - gross income minus annualised credit commitments X 5.25 for single applicants and 4.5 X for joint.
Recently some Spanish banks have started to ask clients to provide their UK Experian or Equifax credit reports (banks in Spain are not able to do credit checks on clients in the UK). Whether a lender will ask for this information depends largely on the policy of the lending entity and the size of the loan.
You are able to obtain a personal credit report online from Equifax www.equifax.co.uk or Experian www.experian.co.uk. These online reports may be all the lender requires or they may ask for hard copies to be provided. An interesting point is that a Spanish mortgage will not be registered as a liability on any UK credit report.
Self-certificate mortgages are starting to become available in Mallorca, generally up to a maximum of 60% of the value of the property although expect to pay a higher interest rate.
Tel. +34 661 560 284 Fax eMail info@mortgagesinmallorca.com
