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Mortgage in Spain, advice from an independent Spanish Mortgage Broker.

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  Costs for arranging a mortgage in Spain
These are the factors to consider when analysing the costs of a Spanish mortgage.
Notary & Gestor
Land Registry
Mortgage stamp duty
Deed Arrangement
Broker & Bank arrangement fee
"Good work Ian, I also really enjoyed our chats together you even made the whole process seem like fun. I am sorry that my application was so bloody complicated. I know that living and working abroad causes the banks to panic, but you smoothed out the wrinkles. Hey, anyone reading this, do not hesitate to ring Ian. He might be a pessimistic old Gillingham supporter, but he knows his stuff.
Anders (Norway and Dubai)"
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Notary & Gestor fees
Signing of the mortgage and purchase deeds must be performed in front of a publicly appointed notary. Their fees are dependent on the complexity of the deeds. For a new purchase, you will pay the notary for both the purchase and mortgage deeds. For a re-mortgage, only the mortgage deed will be relevant.

Land Registry Fees
These fees will be incurred when there is a mortgage to be registered.

Mortgage Stamp Duty (AJD)
This is calculated as a percentage of the mortgage amount. It is payable to the Government. The amount can vary dependent on the region etc. You should budget c1.8% of the mortgage amount. This is not the same tax as the stamp duty that you pay on the property purchase.

Deed arrangement (Legal) fee
Most lenders will have their own Gestoria. It is their role to ensure that the deeds are correctly inscribed in the land registry. You pay their fees, although these are only usually a couple of hundred euros.

I always recommend you budget for your total purchase and mortgage costs at c13.5% of the purchase price. This can of course vary and is only ever give as an ‘estimation’. I would pose this question to your appointed lawyer as to what they ‘estimate’ your total costs to be.
Banks will ask that the funds required for completion, once the mortgage amount and any deposit paid has been deducted, are available in their account (an account they will open in your name) at least 7 days prior to the signing date for completion.

Purchase price 100,000 euros
Mortgage approved 70,000 euros
Estimated TOTAL costs of 13,500 euros.
Your input 43,500 euros.
This amount will need to be available in your new account with the Bank providing the mortgage, up to 7 days prior to the mortgage and property signing.
Valuation of the property
The mortgage is approved ‘in principle’ subject to the valuation. The mortgage will be approved for the lower of either the purchase price or the valuation. The valuation is undertaken by an independent mortgage company that is appointed by the bank agreeing the finance. Usually the valuation fee is requested in advance. The cost of the valuation does depend on the likely value of the property. This fee can start from c300 euros.

Broking and arrangement fees.
Banks will all levy an ‘opening fee’ or ‘arrangement fee’. The amount of this will vary from bank to bank but traditionally it will be between 1% and 2% of the mortgage amount secured.
Our fee is ONLY payable upon our presenting to you a FULL mortgage offer. This FULL offer is only given once the valuation has been undertaken. You pay us NOTHING for providing good advice and NOTHING for submitting an application. Our fee is based on a percentage of the amount of mortgage we secure for you. Our fee is 1% (minimum 595 euros). However, our fee is not set in tablets of stone and for larger amounts and dependent on the complexity of the application we will structure the fee accordingly. In some cases, therefore it could be a lot less than you think.