What is Interest Only?

Interest only is exactly that! Your monthly mortgage repayments are lower because you are not reducing the capital. So you only pay the interest on the amount that you have borrowed and will still have the Capital outstanding at the end of the term.

What Interest rate will I be charged?

The interest rate will always be calculated on the euribor plus the banks charge. This would be typically between 1% and 1.5%.

How much can I borrow?

The amount you can borrow is determined by how much you earn and the banks valuation of the property. It may be possible to borrow up to 70% of the banks valuation of your home or property that you wish to purchase. In some circumstances where the banks are offering reposssed or distressed properties it may be possible to obtain up to 100% of the purchase price. The interest only period can be up to 5 years with a minimum age of 18, or up to a maximum age of 75.

Do I need to prove income?

Yes! You will be asked to provide the following:

For Non-residents of Spain:

• Copies of your N.I.E (National Identification Number in Spain)
• Proof of income, Current P60 & 3 pay slips
• If self employed accountants certificate or 2 years accounts
• Pension certificate (if applicable)
• 3 months bank statements showing income
• A credit report from the UK or Ireland
• Copies of Passport
• Escritura (Deeds)
• Copy of Suma reciept (Council Tax Payment)

• Escritura (Title Deeds)
• Copies of passports
• Residencia certificate
• Vida de Laboral
• For self employed your last four quarters Modelo (Income/IVA)
• For employed a copy of your contract of work
• The last 3 months bank statements showing income
• You may be asked to sign for a Spanish credit report
• Copy of Suma reciept (Council Tax Payment)

Are there any penalties and how quickly can this be done?

After the Interest Only term there are no redemption penalties on either partial or total repayment, if you complete our online application form we can offer you a decision in principal within 24 hours.  Once the valuation of your property has been completed and you have received your mortgage offer we can get you into the notary within a week, making the whole process quick and simple.

Should I have any other questions?

Please contact us for more information on:

Tel 00 34 966 795 220 or 00 34 966 790 218

Alternatively email us here.

Dont forget you can click on our mortgage calculator for quotes, or apply online here.

Direct Mortgages Spain is an independent mortgage broker & practices advice under the guidelines of the FSA
All mortgages & quotations are subject to change, status & valuation, your home is at risk if you do not keep up with your repayments