GREENYROOM.COM
distributes mortgages dealing with two of the largest
financial groups in Europe. With UCI a multinational group, operating in Spain, Portugal and
Greece.
Through the experience acquired, developed and shared with other
countries, we are familiar with and undestand your needs.
As a specialist, GREENYROOM offers a complete service, from application to signing of the mortgage deed, making the purchase of your house easy, convenient and secure.
i need more info about GREENYROOM mortgages...
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It goes without saying that the
decision to buy a home is extremely personal and
depends on a whole host of factors.
We would recommend you give it a great deal of forethought. All too often, people embark on a home search without being fully aware of all the whys and wherefores involved. Having everything clear in your mind will save you a lot of time. |
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It is important to “do your sums”. This will
help you know roughly how much you can
afford to spend on the home you are looking
for. To help you do this, we suggest this
simple formula: According to the experts,
your monthly mortgage payments should not
exceed between 35% and 40% of your net
monthly income, thereby ensuring that you
are not financially “overstretched”. 
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To buy or to rent? |
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you have to ask yourself before making a decision.
The circumstances surrounding the decision whether
to buy or rent are very personal and involve so many
factors that it would be impossible to deal with
them systematically here. Furthermore, renting is
not the purpose of this guide.
However, we would suggest that you give this matter some serious thought, and that you answer the following questionnaire before you continue:
These are just some of the questions which you should ask yourself before you to decide whether to buy or rent. As you can see, the final decision is a very personal one. If, in the end, you decide to buy, we hope this purchase guide will help to pave the way towards your new home. |
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house” 
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1. Can I have access
to a home of similar characteristics by buying or
renting?
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How much can I afford? |
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| As well as “doing your sums”, you
must also consider the entire situation.
In other words, you must take into account the various factors involved in home purchase and financing. We would suggest you fill in all the boxes of the following table. The two columns should add up to the same amount.
If the two columns come to the same amount you are on the right track and the operation is viable. In other words, you have sufficient resources to meet all the expenses. |
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Where to look? |
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If you are now more or less sure what you want to
do, namely you have decided whether to buy or rent,
you have chosen the area that best suits you, you
have calculated the approximate price you can afford
to pay, whether you want a new or a second-hand home,
then you can get down to the business of searching.
There are a whole host of possibilities: if you live in a large city you can consult the specialised property publications, the classified ads of the daily newspapers or their specialised property suplements, which are usually published on a weekly basis. Alternatively, you can consult the Municipal or Regional services, such as “Madrid Ventana Joven”, which provides a property guide for young people in the capital. You can also consult property websites on the Internet, the number of which has significantly increased recently, such as www.greenyroom.com If you live in a more rural district, one solution is to walk around the area and talk to residents or local institutions.
You would be mistaken in thinking that the involvement of an Estate Agent makes the house buying process more expensive. Firstly, their fees are incorporated into the sales price and are therefore paid by the vendor, and secondly because the sales price of a property is always negotiable and the Agent’s fees must be included within the agreed upon price. It is the Estate Agent who can best advise and guide you regarding the availability of homes and current prices in the area in which you are concentrating your search. Moreover, they will be able to offer you a wide selection of properties within the area they cover, either via their own portfolio or in collaboration with fellow professionals. You must take into account that a professional can save you a lot of wasted journeys and time spent searching by saving you from having to check through endless lists of ads and get in touch with vendors. If you can clearly set out your requirements and explain the type of home you are looking for, calling upon the services of a professional can save you a great deal of time and effort. |
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Return to “Looking for a
house”
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The best solution is to call in at an Estate Agent.
If they are located in the area you are interested
in, they will almost certainly be able to offer you
a wide range of choices and they will know the price
situation.
Spanish Mortgage Information
Spanish Mortgage Guide.
Getting a Spanish mortgage and useful information about getting a mortgage in Spain:
Can I get a Spanish Mortgage?
Yes, foreign nationals can obtain a Spanish mortgage for the purchase of a home in Spain. We will be happy to obtain a mortgage quote for you.
How much can I borrow?
Typically, Spanish Banks will lend up to 70% of the value of the home to foreign nationals. We have a preferential arrangement with the Bank of Valencia to lend up to 80% of the value of the home to our clients. As with all mortgages, offers are subject to your financial status.
How is the value of the home calculated?
The bank will carry out a valuation of the property. This typically costs around 300€ and you will be expected to pay this at the outset.
Can I mortgage the IVA (VAT), fees and legal costs?
No. You should allow for the 10% costs from the cash you have available. The banks only lend against the value of the home.
Over what period can I borrow the money?
Mortgages are available for periods of up to 25 years. In special circumstances this can be extended to 30 years.
Up to what age can mortgage repayments be made?
Spanish banks will allow mortgage repayments up to the age of 70, although our advice is to treat 65 as a sensible upper limit.
Can I borrow the staged payments for an “off plan” home?
No. The bank will normally only release funds for a completed home that it can value. Under these circumstances we will ask the developer to allow a 20-30% deposit to be paid on contract, with the balance being paid via a mortgage on completion. This relieves the need for the interim payment.
Are Spanish mortgages cheaper than those in the UK?
Yes. Spanish interest rates are significantly lower than the UK. This makes monthly mortgage repayments more affordable.
What does a typical mortgage cost a month?
It is difficult to generalise, but there is a simple rule of thumb:
For every 100,000€ (£67,500) borrowed over a 25 year period, the monthly repayment would be approximately 500€ (£345) per month.
* This assumes an interest rate of 3.75%
How are Spanish mortgage rates calculated?
All Spanish mortgages track EURIBOR (the European Interbank Offered Rate). This is similar to the UK Bank of England base rate and is Europe wide. Typically, Spanish mortgage interest rates track slightly above over the current EURIBOR rate.
I have seen some very low interest rates. Is there a catch?
Some mortgage lenders advertise very low interest rates. You should be aware that this is only for a short period, after which the rate will track EURIBOR like all other mortgages. These lenders will often offset this lower rate with a higher arrangement fee at the outset.
What is an acceptable arrangement fee?
The Bank of Valencia charges a 1% arrangement fee, based on the value of the loan.
What personal documents will I have to provide?
You will have to complete an application form and provide your passport or identity card. You will also be asked to provide recent bank statements.
For those who are employed by a company you will be asked for your recent payslips and your P60. In some cases you may be asked for your tax return.
If you are self employed you will be asked for your annual tax return, profit and loss statements for the last two years and certified business accounts.
If you are a pensioner you will be required to prove your income with your pension details or certificates and your annual tax return.
What information on the home will I have to provide?
Your lawyer will obtain all the necessary documents from the developer and issue them to the lender.
International Sales Department: +34 968 47 15 28 / +34 687 008 514 
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