Standard Mortgage Terms

Novi Property Mallorca are able to provide a variety of different mortgage and loan products to fit your personal requirements. Whether you are looking for finances for a business investment or you need a mortgage for your holiday home or main residence, will be able to help you. The following features are common amongst most of the loans available:

  • For non-residents loans of up to 70% of the valuation of the property are available although some banks will restrict the borrowing to a percentage of the purchase price, if that is lower.
  • The length of the mortgage can be up to 50 years although the usual term is up to 30 years.
  • The standard rate of interest is variable but we can also access fixed rate deals which are very competitive..
  • Only repayment mortgages (both capital and interest), are currently available in the market. The Interest only deals are not being offered unfortunately.
  • Loans are available for borrowers up to the age of, generally, 75. 
  • Some re-mortgage deals are available.
  • Loans can be taken out in both an individual or Company name.
  • Self Certification (ie non status) mortgages are no longer available.

Documentation Required to Support a Full Loan Application

You can obtain a mortgage quote with just the very basic information set out in our Mortgage Quote Form . However if you proceed to make a formal application you will need to provide additional financial information to support your application. We always recommend that clients get the appropriate information together as soon as possible to ensure the application can be submitted to the various Banks and Lending Institutions as early as possible.

The normal information required is:

About yourself:

  • A copy of your passport and that of any co-applicant
  • A copy of your NIE number - this is a Spanish Tax Authority registration number and is similar to a National Insurance number in the UK (in case you do not possess a NIE number we are able to apply for one on your behalf for a small charge)
  • A list of all properties you possess in Spain and  the deed of purchase (escritura de compraventa)

About the property:

  • Any contract you have signed in respect of the property to be acquired, or that you intend to sign with, specifically the Land Registry details
  • A recent copy of the Land Registry documment (Nota simple) of the property that will be charged with the mortgage – must not be older than three months
  • The Deeds of the property (escritura) and other relevent documents such as the "Final de Obras" (Town Hall completion certificate on a new build project)
  • Latest Town Hall tax receipt (equivalent to Council Tax in the UK)

For those in employment

  • Latest P60
  • Last 3 pay slips (the period covered must not be less than 3 months prior to the mortgage application
  • Bank staements from the prior 12 months before the application

For the self employed

  • Tax Returns for the two years prior to the mortgage application
  • Or last two years annual accounts (revenue and balance sheet) for a company application
  • Letter issued by your Accountant confirming your Net Profit projection for the comming year
  • Bank staements from the prior 12 months before the application

For a Managing director / employee of your own company and from which you receive income

  • Latest P60 / Tax Return
  • Last 3 pay slips (the period covered must not be less than 3 months prior to the mortgage application
  • Bank statements from the last 3 months prior to the mortgage application showing the salary received from your Company
  • Bank statements from the prior 24 months before the application showing you receive any declared dividends from the Company
  • Last Company accounts

Other related Financial areas of interest:

  • Currency Conversion - Find information on how to obtain the best exchange rates on the market and minimise the costs relating to transfering both lump sums or regular payments from the UK to Mallorca, the Balearic Islands and Mainland Spain
  • Banking and Bank Accounts - Advice and information on choosing a Bank in Mallorca and opening a bank account.
  • Property and General Insurance - Information on Insurance policies specially tailored for foreign residents, holiday home and investment property owners.