Local, national and international banks offer mortgages throughout Andalucia to both Spanish citizens and expatriates from countries around the world.
Banks generally are generally willing to loan up to 70% the value of the home you wish to purchase. This can be negotiaged depending on the value of the property you are purchasing and your personal circumstances. Non-Spanish residents may find they are offered a slightly lesser percentage of their home's purchase price by national banks.
By law mortgage consumers have the right to pay off their loan ahead of schedule and if there is a commission involved, it should not be more than 0.5% (as of April 2003).
Consumer organisations in Spain generally agree that it is worth it to shop around for a mortgage and there are specialised companies and financial advisors that can help you by comparing your personal data with offers by a wide array of banks in order to ensure you have access to the very best conditions.
When you sign a mortgage with a Spanish bank, you can expect to be required to have an insurance policy that provides a guarantee for the bank should the main wage earner suffer injury or death and also to insure property against damage that could reduce its worth.
Your bank will order an appraisal of the property you wish to purchase before giving the final approval to a specified loan amount. As is to be expected, the cost of the appraisal is charged to you, the customer.
If you have problems paying a mortgage, be assured that Spanish banks are just as interested as their counterparts around the world in sitting down with you to find a solution. Bank managers in Andalucia's coastal areas generally speak English and can therefore negotiate with you even if you do not speak the language. If you approach your bank director with an array of possible solutions you are very likely to head off more serious problems. If your difficulty stems from having too many loans that you can not keep up with, it may pay to consult a specialist offering debt consolidation services in Andalucia.