Frequently asked questions

There are three main types of mortgage depending on the interest rate. The fixed-rate mortgage keeps the same instalment throughout the life of the loan, offering stability and predictability. The variable-rate mortgage has an instalment that is reviewed periodically according to the Euribor, and can go up or down. The mixed mortgage combines both: an initial fixed-rate period (usually 3 to 10 years) followed by a variable-rate period.

The main requirements are: having stable, provable income (payslips, tax returns), not having excessive debt (the mortgage instalment should not exceed 30-35% of your net income), having savings to cover the deposit (usually 20% of the property's value) plus the associated costs (taxes, notary, registry, valuation, which add up to an extra 10-12%), and having a clean credit history with no registered defaults.

As a general rule, you need to have saved at least 30% of the property's value. Banks usually finance up to 80% of the appraised value (or the purchase price, whichever is lower), so you need to cover the remaining 20% with your savings. In addition, you have to add the purchase costs: taxes (ITP or VAT depending on whether it's second-hand or new), notary, registry and valuation, which amount to an extra 10% to 12% of the price.

The Euribor (Euro Interbank Offered Rate) is the interest rate at which European banks lend money to each other. It is the most widely used reference index for variable-rate mortgages in Spain. If you have a variable mortgage, your interest rate will be the Euribor plus a fixed margin (for example, Euribor + 0.80%). When the Euribor goes up, your instalment goes up; when it goes down, your instalment goes down too. Reviews are usually every six months or annual.

In Spain, the usual maximum term of a mortgage is 30 years, although some banks offer up to 40 years in specific cases. The term you are granted will depend on your age: most banks require the mortgage to be fully repaid before the age of 75. A longer term reduces the monthly instalment but increases the total interest paid over the life of the loan.

The complete process from application to signing usually takes between 4 and 8 weeks. The bank's analysis and approval phase takes between 1 and 3 weeks. After that, the property valuation requires between 5 and 10 days. Finally, preparing the legal paperwork and signing before the notary can take a further 1 to 2 weeks. With SmartCredit+ we optimise each phase to reduce timelines as much as possible.

The basic paperwork includes: a valid DNI or NIE, your last 3 payslips, last year's income tax return, an up-to-date employment history report, bank statements from the last 3-6 months, and your employment contract. If you are self-employed, you will also need your latest quarterly VAT and personal income tax payments, your self-employed contribution receipts and your latest annual VAT return. If you have already found a home, you will also need the deposit contract or the property's land registry extract.

Yes, self-employed people can access mortgages, although the requirements are somewhat stricter. Banks usually ask for at least 2 years of self-employed activity, with stable and provable income through quarterly and annual tax returns. The financing percentage may be slightly lower (70-80% instead of the usual 80%) and the margin slightly higher. At SmartCredit+ we have experience with self-employed profiles and know which banks are more flexible with this type of client.

The mortgage is signed before a notary. First, at least 10 days before signing, the notary will give you the FEIN (European Standardised Information Sheet) and all the pre-contractual paperwork so you can review it carefully. On the day of signing you will go to the notary's office, where the notary will read the deeds and check that you understand all the conditions. After signing, the notary will register the mortgage in the Land Registry. With SmartCredit+ we support you throughout the process and answer any questions before and during signing.

Yes, there are several options to modify your mortgage after signing. A novation lets you renegotiate conditions with your own bank (interest rate, term, etc.). A transfer (subrogation) lets you move your mortgage to another bank that offers better conditions. And early repayment lets you pay back part of the outstanding capital to reduce the instalment or the term. Since 2019, the fees for these operations are regulated and capped by law.