Mortgage Application In Gran Canaria
This Page is a simple introduction to mortgage application in Gran Canaria and Spain.
You have chosen your new property and you have agreed and signed an agreement of sale with the owner in front of the notary, and you have paid your deposit. You have also we hope had every stage of this process checked thoroughly by a lawyer.
Some will be able to buy their new property outright, however this page assumes that you are not able to do this. Your agreement of sale will usually have an agreed date of completion and some conditions that will allow you to receive your deposit back if you are unable to complete, for example if you do not secure a mortgage.
If you are buying a property in Gran Canaria or Spain for the first time we cannot stress enough how important it is to contract a good lawyer, and buy through a reputable real estate agent. This will ensure that you do not have to some of the pitfalls that you can come across when buying a property.
Okay, so you have everything agreed, and your lawyer is making sure that the legal side of the paperwork is done. Now you have to secure that mortgage. First step is to decide which type of mortgage you require.
- Non Resident
If you are buying the property as an investment and you live in the UK for the majority of the time you require a Non Resident mortgage. If however you are relocating to Gran Canaria or Spain and are buying the property to live in it yourself, you will be looking to secure a Resident mortgage.
Where do you go to secure your mortgage? If you are buying through a real estate agent, the agency is likely to have a few suggestions to help you. Be careful, the real estate agent may be on a commission, and the resulting mortgage might not be the best for you. Ask for help from the real estate agent and also shop around to make certain that you get the best deal.
We are not able to tell you which banks to approach or which are likely to offer you good deals on a mortgage. We can tell you that you are likely to get a better deal if you already bank with the bank you are choosing.
One other factor to be aware of is, if you looking for a Non Resident Mortgage, the deals will not be as good as the ones offered for Resident Mortgages.
One of the biggest issues in obtaining a mortgage is having all the right documentation when you go to the bank to ask. There is nothing worse that being told you don´t have this document and you have to spend even more time obtaining the missing document, and may have to wait another day for the bank to be open again.
To help make this a little easier, See the pages explaining the different documents that you will likely for both types of mortgage.
Here is where your experiences will help us make this a better section for everyone. If you find something missing within the information we have given you the please let us know as soon as you can. Using the Contact Us page, email us, and tell us which page is missing the information, and what the information is and we will update the page with the information as soon as we can.
A little word of warning. Once you have secured the mortgage offer and the sale is completed, make certain that you do not default. The law here does not work in same way as the UK. Missing up to three payments on your mortgage, will result in your bank foreclosing on the deal and starting proceedings for repossession of the property. The bank will auction the property and the amount of the sale will be taken off your debt. However you are still likely to be in debt to the bank, and if the amount of the debt is large enough, the Spanish bank has the power to seize your assets in the UK. To say nothing about what happens to your credit rating.