Free guide to Spanish mortgages Assetz Finance

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					    How the Assetz Finance Spanish Mortgage Department can assist
    you (pages 1-3)
        This section provides information on the service offered by the Spanish
        Mortgage Department and how you can make the most of it.

    Feedback received from past clients (pages 4-7)

    Answers to FAQ’s on Spanish Mortgages (pages 8-17)
        Our Finance Consultants have pulled together all of their knowledge and
        expertise in their specialist field in order to compile a list of frank, honest
        answers to FAQ’s on Spanish Mortgages. We feel it is very important to
        ensure that all our clients have a thorough understanding of the process that
        they are about to embark on and therefore urge you to read this section. If you
        have a question that is not answered in this section please do not hesitate to
        contact us.
    Documentation required to support your application (pages 19-22)
    Explanation of our fees (page 23)
    The Assetz Finance Mortgage Fee Form (pages 24-25)
    The Assetz Finance Mortgage Questionnaire (pages 26-29)
As soon as you call or email the Spanish Mortgage Department you will be allocated
your own personal Finance Consultant. They will assist you with choosing the smartest
finance solution for your purchase. This sourcing service offered by our Finance
Consultant is free of charge and you are under no obligation.
The Assetz Finance Spanish Mortgage Service is available to clients buying through the
Spanish property specialists, Assetz Spain, or any other Estate Agent.

       The Smartest Finance Solutions
       Free, Impartial Advice from Trained Specialists
           Free General Introduction to Spanish Mortgages
           Free Calculation of Budget and Affordability

       Guaranteed Mortgage Offer
Once you have decided that you would like to apply for one of the mortgage products that
your Finance Consultant has sourced for you, they will work with you and guide you
through the whole mortgage process step-by-step. They will also liaise with the different
bodies involved in your purchase on your behalf (your estate agent, your lender, the legal
advisors…). This mortgage application service was designed to generally make your life
easier and make the Spanish mortgage process straight-forward and worry-free. There is
a small fee charged at this stage to cover all of the time and resources used to provide this
service. This is explained in more detail in Our Fees Section (page 23).

       Peace of mind as everything is taken care of for you
Due to our reputation and volume of mortgage referrals, Assetz Finance can obtain the
most competitive rates and terms on the market in overseas mortgages.
What’s more, we guarantee to secure a Spanish mortgage for you so you can relax in the
knowledge that your finance if being taken care of for you.
However, Assetz Finance is not a standard mortgage broker, as our service does not
simply end with sourcing the mortgage product. We also assist each client throughout the
whole of the mortgage process from start to finish. We have put in place this very
comprehensive and unique service based on our past experience of how best to assist non
Spanish residents and non Spanish speakers in obtaining a Spanish mortgage offer and
can be broken down into 4 steps as outlined below.

       Step 1 : The Mortgage Pre-approval Form.
The first step is to check that you fit Spanish lending criteria and establish your budget.
You will need to complete our Mortgage Pre-approval Form and then email it to You can find a copy of this form at the end of this
Guide or we can email you a word version on your request.
 We will then use the information given on your mortgage form to check that your
circumstances fit Spanish lending criteria and to establish your budget. This type of pre-
approval is essential and we urge you to complete this stage as early on in your purchase
as possible.

       Step 2 : Details of Mortgage Solutions
Your Spanish Finance Consultant will then email you full details on the mortgages
available to you on your intended purchase. If you do not have a property in mind, your
Finance Consultant can provide details on mortgage solutions that would be available to
you given your budget so that you are then in a position to look for a property that will
match this.

       Step 3 : The Mortgage Application
Once you have decided to apply for a mortgage with the assistance of your Spanish
Finance Consultant you will move on to step 3. You will be provided with all of the
necessary forms and instructions. For the supporting documentation that you will need to
provide please see pages 17-20 of this Guide for a full description and a check list to help
Instead of submitting these forms and supporting documentation directly to the bank, you
will be invited to send them to your Finance Consultant who will:
       compile them in the order preferred by the lender,
       annotate them if necessary in order to explain any elements of your application
       include a covering letter in Spanish on your behalf to make your application as
       clear as possible to the lender,
       take a copy of all documents to be used as a reference if the lender questions any
       of these papers,
       present the file in its most favourable light,
       send them to the lender by express delivery to ensure that your documents are
       secure and are delivered with no delay (usually within 24 hours).
Your Spanish Finance Consultant will have every angle covered for you so that you have
peace of mind and can concentrate on the “niceties” of purchasing in Spain.
(NB: Only once your Finance Consultant has received all of the required paperwork can
they make the application for you.)

       Step 4 : The Follow up of the application and miscellaneous
Your Finance Consultant will liaise with your chosen bank to find out their decision as
swiftly as possible or to provide them with any further information or documentation
from yourself that your lender requires in order to process your application.
They will also speed up the processing of your application if necessary.
Once your mortgage has been accepted and your offer sent out to you, your Finance
Consultant will:
       Put you in contact with your bilingual relationship manager at the bank in order
       for you to discuss their offer.
       Help you to set up a Spanish bank account (it is compulsory that your Spanish
       mortgage payments are paid from a current account opened with the Spanish
       Help you to set up any life insurance or buildings/contents insurance that you
       Indicate when and how to transfer funds into your Spanish current account,
       Inform you of the next stage of the buying process, now that you have finished the
       mortgage stage you will be proceeding onto the next stage,
       Liaise with your lender in the future by providing you with the Customer Service
       contact details of your lender so that you can continue a satisfactory relationship
       with them.

       Our optional Purchase Assistance Service
Past feedback has told us that clients often struggle with purchasing a Spanish property
and most are unfamiliar with the legalities associated with it. To respond to this, Assetz
has launched a “Purchase Assistance Service". If you think you would be interested in us
fully assisting you with your property purchase, please check our fees section for more
information on how we can do this for a small additional fee.

To get an idea of what past clients have thought of the Assetz Finance Overseas
Mortgages Services we have given below a variety of the different comments that we
have received from past clients.
If you would like to see the feedback form in its full format or would like to speak to one
of our past clients we would be more than happy to organise this for you.

       Were you happy with the level of service you received
       from Assetz Finance?
Responses and comments:

     I was delighted with the level of service I received.
     Absolutely excellent. I've been amazed at the attention to detail and the ability to
     keep me informed every step of the way.
     Very happy. They were always there to help which was quite often!
     Yes - extremely happy. I haven't been the easiest customer to deal with and realise
     that trying to track me down across time zones has been challenging. However, all
     of the people I've dealt with have been first class and have really gone the extra
     mile to try & made things easier for me.
     In general yes but the amount of paperwork involved is pretty immense.
     Very happy – Assetz Finance made what could have been a very daunting task
     comparatively easy and kept me on the right track throughout the process.
     Yes it was excellent- helpful and very responsive
     Yes, I thought your group was very organized.
     I was extremely pleased with the level of service that I received from you all of the
     Absolutely. Very prompt in everything, you kept in contact with sound advice.
     Yes, definitely
     Generally very good but felt very rushed at times.
     Yes, the whole process went very smoothly and we were given good advice.
     Yes. Very quick turnaround to questions raised and the purchase was seemless
     thanks to this. Everything was completed within the expected timeframes and
     relevant introductions made for bank accounts, mortgages and notaires.
     Yes, I thought the level of service was very high and also felt I could approach Katy
     with any questions.
     Excellent, fantastic could not have been easier!

     Did you consider the fee good value for money
     considering the service you received and the time and
     worry this assistance saved you?

Response and comments:

    The mortgage service fee was good value for money. The range of mortgage
    options I was given, and the advice in relation to these mortgages was very helpful.
    The Fee was very good value indeed.
    Yes I think so - for me it was worth paying the fee to have someone else do the
    ground work for me.
    Excellent value, especially as the service is still on-going several months after
    having signed up. It is difficult to imagine completing the whole process so
    smoothly without the expert help of the Assetz Finance mortgage service.
    Very good value – in actual fact I think you could charge a slightly higher fee and
    still offer good value for money.
    Possibly, although I expect Assetz Finance receive a commission from the
    mortgage provider, so it would depend on that before I could answer.
    For my particular case it was worth the cost.
    The mortgage fee was definitely good value.
    The fee was excellent value for money.
    Again yes it was, there was more paperwork involved than I first anticipated and I
    needed all the help and advice you gave!
    Yes for peace of mind and simplicity and de stressing the situation.
    I think it's worth more. I have paid a higher mount for other purchases with
    nowhere near the level of service.
    I guess so!! For us it meant taking the hassle out of the purchase process when
    ultimately we were going at it blind and we put our total trust in the team who were
    always willing to answer our questions.
    I considered the fee as money well spent considering the quality of service received.
    Yes as it is a good service but then if you have not already used it you would not
    know it so the fee could seem expensive.
    Yes, I found your assistance very beneficial in light of the bureaucracy involved
    with the mortgage process.
    Nothing to compare it with.
    Yes, it was appropriate for the level of service and assistance we received as first
    time buyers. However, for people who have already been through the Spanish
    mortgage process, I think the fee should be reduced, as less assistance will probably
    be required.
    Yes, considering the level of service that you provide.
    Interesting. The fee was not prohibitive when I made contact ie asked for your help,
    and once experienced I would not hesitate in paying again. Whether it would put
    people off initially, without the positive experience I don't know.
    On my experience it seems fair but it does sound a big figure if you don’t know
    what is entailed.

    I would definitely agree - I have bought through another company and paid a lot
    more with the individual fees.
    I considered this very good.
    Value indeed; the idea of having a centralized comparison service is very useful for
    time saving, although it would be more useful to give more information on the
    different products that you are potentially recommending or links to web sites for
    further research for those clients who wish to compare closer.
    Yes, for someone who does not know the Spanish mortgage system using the
    Assetz Finance service is well worth it.

     Would you recommend Assetz Finance to a friend?

Responses and comments:

    Yes. Already have done.
    Absolutely, already have to many.
    Yes, I already have.
    Without hesitation and I have already done so
    I would recommend the professionalism and interpersonal business skills exhibited
    by Katy. I have found dealing with you and your team to be refreshing and a real
    Yes. I have done so already, but they haven’t bought anything yet.
    Could not have completed the purchases without your assistance. I would definitely
    recommend your services to anyone looking to purchase property overseas with
    Yup..and have
    Yes, definitely
    I have already done so.

     Is there anything that you think Assetz Finance could do
     to improve its service?

Responses and comments:

    Everybody I have dealt with have all been fantastic and at the moment I can't think
    of one thing they could do differently ... unless Assetz would consider paying all its
    clients deposits and mortgages? No?!
    I wonder if some kind of Internet portal - with forms, guidelines, inventory of work
    already done etc etc. might be useful.

Nothing major - maybe a slightly quicker response time to emails. All in all though
an excellent service. Keep it up!
Off hand, no. My experience dealing with the team is the underlying reason I
would recommend Assetz Finance. They are a great asset to your company.
Nothing I can think of.
No just keep doing what you are doing – excellent service.
I can’t really think how, everything we required was dealt with very efficiently-
keep up the good work.
Yes. What helped us enormously though was being able to communicate through
email. I think if we had just talked on the phone I would have forgotten half of
what was said, but being able to read through things again was a big help and much
What you do is help with the overall deal ie contract advice as well as just finance. I
found this and Katy invaluable. I didn't use a lawyer as it was a new build, so katy's
help was outstanding. I would suggest that you shout about this element of what
you do. It's more than just finding a lender.
Offer a translation service - ie all docs and correspondence comes through you - I
would be happy to pay in sterling for that service.

A FAQ section with a difference!
This section exposes any potential pitfalls, addresses misconceptions that have developed
in the industry due to false advertising and gives a truthful account of everything we can
think of that you need to know.
Assetz Finance does not work exclusively for one lender and can therefore offer
completely impartial advice. Our policy, not only includes being impartial, but also
focuses on approaching the topic of Overseas Finance honestly.
We do not want you to miss out on the great interest rates offered by overseas lenders and
the advantages of overseas finance because you don’t speak the language, are unfamiliar
with the process and therefore nervous of taking on the unknown. Our bilingual and
experienced mortgage departments will provide you with all of the advice and assistance
you will need to eradicate this feeling of anxiety and enable you to confidently embark on
making the most of these advantages.
Our first piece of advice is to read as much honest and frank information as possible on
the subject starting now…

       Can I actually afford a Spanish mortgage?
We always analyse your current financial situation for you at the very start of the process.
We do this before going into too much detail about the types of mortgages available in
Spain. We do not advertise “85% LTV mortgages” or “pure interest-only mortgages” or
any other mortgage products that are available overseas but only to a very small number
of clients due to the harsh lending criteria used for these products. We would only discuss
these products with you once we have fully analysed your current financial situation,
your intended purchase and therefore ascertained that these products would be
realistically available to you.
We will advise you honestly on the amount of mortgage that would be available to you
from a Spanish lender, what the true interest rate you are likely to be offered and under
what terms given your financial situation and intended purchase.
We will advise you on the affordability criteria used by each bank and advise you which
lender you would be best to apply to given the criteria they use and your financial
All of this advice and consultation is free of charge.

       But wouldn’t it be simpler to just take a loan with my
       own home bank?
Quite honestly, perhaps! Your home bank speaks your language and you are used to their
procedures. Some investors and purchasers of overseas property do find that this is the
best route for them and in some cases it may be their only route if their circumstances do
not allow a foreign mortgage. Assetz Finance is here to listen to your requirements and to
guide you in the right direction in order to optimise your purchase. Assetz Finance also
provides a UK mortgages and loans service and can therefore assist you if you decide that
this would be the better route for you. Moreover, we can also provide Spanish mortgages
(secured on your Spanish property) in Sterling if you think this may be more suitable for
As you will probably be aware, there are a number of Spanish subsidiaries of UK high
street lenders now offering Euro mortgages secured on Spanish property. These Spanish
subsidiaries run marketing campaigns to the UK general public using their UK branding
and reputation. However, they actually use Spanish mortgage rules on affordability and
procedures for applications identical to their Spanish counterparts and bear little
resemblance to their UK name sake. For this reason it is best to compare the products
available through the Spanish subsidiary of your UK high street lender with those
available through all the other lenders on the Spanish market. You may find that a very
Spanish sounding bank offers a more flexible approach or a better deal for your particular
purchase than the Spanish branches of the well known names. It can be time consuming
looking through all of the products offered by all of the various lenders in order to
establish which is the best for and so Assetz Finance does this for you.
Once you have established that Spanish finance is the best route for your purchase,
Assetz Finance can ensure that you understand the procedures used by Spanish lenders
and have all of the bilingual assistance you need. It would be such a shame to miss out on
the low interest rates available in Spain.
With Assetz Finance assisting you throughout the whole process, you won’t have to and
applying for a Spanish mortgage won’t be as daunting or as difficult as it may seem at
first. In fact, we have found that Spanish Mortgages are relatively easy to secure and are
not convinced that UK mortgage applications could be deemed as “easier”.
We just need a bit of your time, as for example, we need you to complete forms in your
handwriting and sign them as we cannot do this for you as they would not then be legal.
We have found that it is only if purchasers of Spanish property attempt to secure such a
mortgage without the help of a bilingual expert that it may become more complicated
than if they had applied for a UK mortgage.

       How long is it all going to take? Will it slow down my
       purchase if I have to apply for a mortgage?
Applying for a Spanish mortgage should never affect the date at which you can sign the
title deeds to your property. At Assetz Finance, we are fully aware of the timeframe and
deadlines of the purchase process and can liaise with the agent that you are using whether
it is Assetz Spain or another agent in order to make sure we keep to these deadlines. As
long as you provide all of the supporting documentation and forms to your Finance
Consultant initially, you will be able to secure a Spanish mortgage offer in 2 weeks.

       Wouldn’t I be better off applying to the Spanish bank
       myself or going to another mortgage broker who do not
       charge a fee?
Assetz Finance feels that its service speaks for itself and more than justifies the fee
charged. The comments that we have received from past clients have confirmed this
further (see pages 4-7).
If you were to go to the Spanish bank directly you would not be able to benefit from the
rapport that we have built up with our lenders that enables us to speed up applications and
negotiate any problems. As we have experience in applying for Spanish mortgages, we
know exactly how it works, how to put forward the best application to the bank on your
behalf and how to guarantee that the bank give you the best offer possible.
You would of course also have to spend the time to contact each individual bank to see
what deals they offer rather than have your Finance Consultant take that task off your

       But couldn’t I find a better deal at a bank that you do not
Over the years we have researched the mortgage packages offered by all of the Spanish
banks that offer mortgages to non-Spanish residents and the reason we do not work with
certain lenders is that we have found that their packages are not best tailored to our
clients. We will however research into any lender you would prefer to use to ensure for
definite that their package is not better tailored to your needs. We are not tied to any one
bank so we can always work with new banks if we do find that they have a good package
to offer our clients.

       What can’t you do for me?
Unfortunately, we cannot of course compile all of the paperwork for you. We do rely on
you putting in the work to find all of your important documents.

We also cannot control the mortgage products of the banks or any changes to them. If the
lender decides to change their rates or conditions during the time that they are processing
your application we cannot stop them from offering you a mortgage that differs from the
mortgage we proposed. However, we do put you in touch with your bilingual relationship
manager at the bank so that you can discuss the mortgage package that they have offered

                                           - 10 -
you in order to establish if it differs from our proposal, and if it still meets your

We are sure that you appreciate that it is normal that, as a mortgage service, we do not
assist with the above two points.

We are sure that you will agree that our service is extremely comprehensive and provides
you with everything you need. We are however honest and therefore we do not promise
you that we can do these above two points when in fact it is impossible for a mortgage
broker to do so.

       Can I use the Assetz Finance Spanish mortgage service if
       I am not purchasing a property through the Assetz
Assetz Finance offers its Spanish Mortgage Service to all clients whether purchasing with
the Assetz Group or with any other Estate Agent or Developer.
As long as you provide us with your Agent’s contact details we are able to liaise with
them on your behalf.

       How exactly does the mortgage process work in Spain?
The mortgage process in Spain differs slightly to that in the UK, Ireland, America or
Canada but Assetz Finance will guide you through the entire process, so there is no need
to worry. Here is an introduction to what you can expect, and how we can simplify the
process for you.
In Spain, you can apply for an agreement in principle quite easily from some lenders (but
not all) and this can even be done by email. You just have to complete an application
form, scan it and email it to your Finance Consultant. From this we can secure you a
decision in principle. This can be done prior to reserving a property if desired. Once you
have signed preliminary purchase contracts (and usually paid a small deposit) you will
need to make a full mortgage application by your chosen lender.
The lender will normally take up to 2 weeks to process this full application. During this
time the lender will make his reference enquiries (with your home bank, employer,
accountant etc) if any, and carry out any credit checks. Once they receive all references
and checks back and have carried out a valuation of your property or floor/site plans, they
will be able to send you their offer letter stating full terms and conditions.
Once your application is accepted and your mortgage offer is sent to you, your Finance
Consultant will help you understand your offer and guide you on how to accept it.
As well as setting up the mortgage, Assetz Finance can assist you with setting up the
obligatory current account with your lender and any insurance policies (life insurance if
you wish, plus the obligatory building and contents insurance).
Once your lender receives your accepted offer, and you have opened your current
account, you will be ready to proceed with finalising your purchase.

                                          - 11 -
       How does the mortgage process work when buying off-
       plan property in Spain?
Spanish lenders are only able to release the funds from your Spanish mortgage once the
property is completed. So you will require UK funding to pay for any stage payments
required during the construction of the property. Our UK mortgage advisors will be able
to arrange a UK re-mortgage or loan for you to pay these stage payments. They will liaise
with your Spanish Finance Consultant in order to ensure that you will not alter your
affordability for a Spanish mortgage on completion because of this extra borrowing in the
You will only need to apply for your Spanish mortgage about 3-4 months before the
property is due to be delivered to you (and your title deeds signed). Then once the
property is delivered and this Spanish mortgage is released to you, you will be able to
cover your last stage payment, all of the purchase costs and taxes and perhaps may even
have a sum left over for your use.

       What is the advantage of using a Spanish mortgage to
       finance my Spanish property?
Firstly, lower interest rates than in most English speaking countries!
By using a Spanish mortgage to finance this purchase it leaves you with the possibility of
buying something else with the equity or funds available to you in the UK.
If you borrow in your domestic currency, when you come to converting the funds into
Euros, the conversion costs involved for the entire purchase of the property may be
If you want to let out your property for income, you could set the Spanish mortgage
interest against the Spanish rental income for tax purposes, which is particularly
beneficial for Higher Rate tax payers. The loan interest from any domestic loan or re-
mortgage could not be set against your Spanish rental income in the same way.
It may be wise to consider the risks of increasing domestic borrowing as compared to
taking out a new mortgage in Spain. By re-mortgaging your main home you may increase
the risk of losing it at a time of unforeseen financial difficulty, whereas with a new
mortgage on a second home, your main home remains safe.
There are risks involved with all types of borrowing, home and abroad, and you have to
opt for what you feel most comfortable with. Assetz Finance is here to help you feel at
ease with borrowing in Spain and therefore help you benefit from all the above
advantages of a Spanish mortgage if you desire.
However we can also assist purchasers who, despite the advantages of Spanish
mortgages, would prefer to raise the finance in the UK.

       What is the maximum amount I can borrow?
In Spain, lenders calculate how much you can borrow differently to UK, Irish or
American lenders, and this can vary greatly from lender to lender. Although some will
use income multiples, most of them base affordability on what is called “debt to income

                                           - 12 -
ratio”. This ratio should not exceed 35, 40, or 45%, depending on the lender and the
product required. In plain English, this means that your monthly payments for the
prospective Spanish mortgage, plus all of your current monthly financial outgoings
should not exceed 35, 40, or 45% of your NET monthly income. By financial outgoings
we mean debt servicing, so mortgage/rent, any car loan, bank loan, HP loan, child
maintenance payments etc. By NET income we mean all employment income, pension
income, investment income and rental income (both present and future) after tax. Not all
the lenders will normally be able to take future rental income into account for their “debt
to income ratio” calculation.
You do not need to worry about calculating your own debt to income ratio, or your
maximum budget for your purchase, as your Finance Consultant will do this for you.

Figures given in your application for your NET income must be supported by the
applicable documents. For example, self employed borrowers would have to show their
last audited company accounts and personal tax return, and salaried borrowers would
have to provide their last p60 and /or their last 3 pay slips, depending on the lender.
If you are buying the property with another person, the mortgage application must be
made in both names and both purchasers must provide all of the necessary
documentation. In terms of the debt to income ratio, the calculations are exactly the same
and use joint net income and joint outgoings.
Each borrower’s personal situation varies and the debt to income ratio calculation
therefore does not apply to the letter for all purchasers of Spanish property.
For example, if your outgoings are low, but you are currently spending nothing on
accommodation, then lenders may allow room for this when calculating your debt to
income ratio. An example would be if an applicant had £500/month to spend on a
Spanish mortgage according to the criteria above, but was living in their partner’s house
which was fully owned and paid for by their partner, and the applicant was not paying
any rent. In this case, a Spanish lender may question the security of the arrangement, and
allow room in their calculations for any potential living costs the applicant would incur if
they were to move out. The amount available for the Spanish mortgage may therefore be
reduced to around £200/month, for example.
For high net worth borrowers or borrowers providing a deposit of more than 40%, the
debt to income ratio used is slightly more flexible.
Please contact Assetz Finance on 0845 400 8000 if you wish a Finance Consultant to
calculate your debt to income ratio, budget, likely loan to value and term.

       What different types of mortgage packages are available
       to me?
The mortgage products available in Spain vary depending on the borrower’s
circumstances and requirements. Your Finance Consultant will be able to source the best
mortgage deal for your particular circumstances once you have completed and sent them
your Pre-Approval form.

                                           - 13 -
       How will I pay my mortgage?
Most Spanish mortgages are paid monthly. Each month the lender will withdraw the
mortgage payments from the current account that they have opened for you or that we
have opened for you with another bank if your lender does not offer current accounts. We
can calculate approximate monthly repayment amounts for you for the different mortgage
products available to you to give you an idea of your outlay each month.

       What costs are involved with a Spanish mortgage?
The Assetz Finance Mortgage Service Fee
All of our advice, assistance and simulations are free of charge. However, once you have
decided to apply for a mortgage through our service we do charge an up front fee. As we
are confident in our ability to secure a Spanish mortgage for you we do not feel that we
need to wait before charging you. We have found from past experience that clients have
preferred to pay the fee up-front so that it is done.
To our knowledge, there is no other company in the market offering as comprehensive a
service as Assetz Finance without charging a fee of some type. This is because the
commissions received by brokers from overseas lenders are very minimal and cannot
cover all the time and resources required in order to be able to offer the type of high level
of service that we do. Our non-charging competitors are subsequently unable to offer the
amount of time and assistance that our services involve. In comparison to other overseas
mortgage brokers that charge a fee, we have found that Assetz Finance consistently
charges less.
We are sure that once you have used the Assetz Finance mortgage service you will agree
that this fee is extremely reasonable. In fact, you can read comments from our past clients
which confirm that this has been the case for all our clients in the past on pages 4-7.
For details of the Assetz Finance Mortgage service fee please see page 23 of this Guide.
The lender’s fees
Valuation fees
All lenders charge a valuation fee up front. They need to carry out the valuation before
they are able to offer you a mortgage.
If you decide not to proceed with your purchase for any reason or if your application is
refused, Spanish lenders will normally refund the valuation fees, if the valuation has not
already been carried out.
It is very rare for a Spanish lender to refuse an Assetz Finance applicant as we will have
checked that you fit Spanish lending criteria and will advise you if you are likely to be
unsuccessful in order to avoid you making an application and paying these fees
Arrangement Fees
Most lenders will also charge an arrangement fee either once you accept their offer or
when they release the funds from the mortgage. These fees will normally be withdrawn
from your Spanish current account automatically.

                                           - 14 -
The arrangement fee is normally between 1% and 2%. However, Assetz Finance has
negotiated with all its lenders to insure that whenever possible you never pay more than
1% of the mortgage amount. Please be wary of any broker that informs you that the
mortgage arrangement fee is 2%, as the brokers are often paid by the lenders and this is
why brokers sometimes do not negotiate the arrangement fee down like we do at Assetz
Mortgage related legal fees
Spanish mortgages have legal fees associated to them; these are:
   -   Mortgage stamp duty: this is approximately 1.8% of the mortgage amount, and is
       payable to the Spanish tax authorities.
   -   Mortgage land registry, notary and agency fees. These normally add up to
       approximately 1.5% of the mortgage amount, and are paid to the notary.
Other Transaction Costs
At this stage you may have been informed of the taxes and costs that buying a property in
Spain has (excluding the mortgage costs). The fees associated to the purchase of the
property are:
   -   IVA for new properties or transfer tax for resale properties, which is 7% in
       mainland Spain and 6% in the Canary and Balearic Islands. You may have
       already paid part of this if your property is off plan and you have already paid a
       deposit in stage payments.
   -   Property stamp duty of 1% for new build properties only.
   -   Property land registry, notary and agency fees. These normally add up to 2% of
       the value of the property and are paid to the appointed notario in Spain. This
       notario plays a compulsory role in the purchase of all Spanish property, but does
       not give any legal advice or assistance with obtaining the NIE number or setting
       up a power of attorney. For this kind of assistance, which we highly recommend,
       you will need to appoint your own solicitor. This will come at an additional price.
       We can recommend UK or local impartial solicitors to you if you require.

Our optional Purchase Assistance Service
Buying property in Spain involves constant liaising with 4 central parties – the buyer, the
seller, the estate agent and the solicitor. Past feedback has told us that clients often
struggle with this and most are unfamiliar with the legalities associated with Spanish
property purchase. To respond to this, Assetz has launched a “Purchase
Assistance Service". This enables me to arrange everything on your behalf, allowing you
to deal with a native (English) speaker based in the UK - leaving you more time to relish
the experience of buying in Spain. If you feel you would be interested in this service, in
addition to our mortgage arrangement service, please let us know when you return your
pre-approval form so that we can start working on this for you immediately to ensure that
you have all the advice and support you require from the moment you start looking
and reserving property.

                                          - 15 -
The fee for this additional service to give you peace of mind is:

   -   £150 if you request it along with the Mortgage Fee Form
   -   £199 if you decide to request the service after submitting your Mortgage Fee

       Do I need to travel to Spain or to come to your office to
       arrange a mortgage?
No, we can arrange everything for you over the phone or by email as long as you are able
to provide all of the necessary paperwork to support your application by post to our
office. However, you will need to appoint a solicitor, who will have the Power of
Attorney to sign documents on your behalf.

       Could we purchase via a Spanish or UK company?
If a Spanish company is purchasing the property, the mortgage application must:
           •   be made in the name of the Spanish company
           •   include certain documents regarding the company
           •   give the owners of the company as guarantors and supporting paperwork
               must be provided by each shareholder of the company.
A UK Limited company can also purchase a property in Spain and apply for a mortgage
secured on the Spanish property. The lender will ask for personal guarantees and full
application details from each shareholder of the limited company, as well as for the
company accounts, and the certification of incorporation. The company will also need to
open a Spanish bank account, which we will organise for you.

       Do I need to have a survey carried out?
The lender will send their own expert to do a valuation (which is why you are charged
valuation fees), before deciding on the mortgage amount and offering a mortgage to you.
Your solicitor will advise you if it is prudent given your property type to carry out any
further surveys or investigations on the property.

If you have a question that is not addressed above, please do not hesitate to contact us
directly to speak to one of our experienced Finance Specialists on 0800 400 8000.

And what’s more, calls will be charged at local rate wherever you may be calling from in
the UK and will be charged at normal international rates if you are calling from abroad!

                                           - 16 -
One last thing to bear in mind….




                                   - 17 -
Spanish lenders are keen to work with our Spanish Mortgage Department because of the
way that we organise our clients’ applications and ensure our clients submit full, clear
and therefore very strong applications. We do not submit half-hearted applications that
will automatically be refused by every lender and will waste everyone’s time. Our
reputation is based on our ability to explain to clients exactly what they must provide
within a Mortgage Application, assisting them with providing these documents and then
presenting them in a professional manner to our lenders.
The mortgage application will be treated quickly and easily if you can provide all of the
necessary documentation. You will delay your application considerably if you do not
provide these documents.
Some lenders require supporting documentation to be certified as true to the originals.
For any documents that must be certified, you should take the originals and the copies
along to your local bank branch, accountant, lawyer or embassy and ask them to sign,
date, stamp and certify the copies. Your mortgage advisor at Assetz can also do this,
however we must be able to see the originals which could mean posting them to our
office. The contact details of the person who certified the copies must be provided. Some
lenders may ask to only certify copies of your passport(s), whilst others may ask you to
certify all the documents you are submitting.

                  NOT INCLUDE YOUR NAME.

The documents that must be provided with the application will vary from bank to bank
and you should therefore use the banks checklist that we will provide you with once you
have chosen your preferred lender.

   As a general guide, Spanish lenders normally require:

   1. Personal details
       All borrowers’ passports
       A recent utility bill/council tax bill.

                                             - 18 -
   2. Property details
       A copy of the signed preliminary purchase agreement will be required as soon as
       it is available.
       If you are buying through Assetz Spain, they will provide us with a copy of the
       above purchase agreement if you require.
       If you are buying through another Estate Agent, you must either personally
       provide us with this purchase agreement or must give us the contact details of
       your Estate Agent so that we can contact them and ask them for it.
       Some lenders may also require a copy of the updated land registry documents (for
       re-sale properties), or a copy of the first occupation license (if the property bought
       is new build).

   3. Income
For employed borrowers

       Last 2 or 3 months consecutive payslips or /and, depending on the lender,
       a copy of your most recent P60 (for tax year ending April 2007 if possible, or
       ending April 2006 if not applicable).

For self-employed borrowers,

       The last 1, 2, or 3 personal tax returns.
       The last 2 or 3 audited accounts for your self employed activity, certified by your
       A letter from your accountant certifying the amounts on your tax returns.
       Sometimes but not normally a copy of your latest business current account

   4. Financial details

       The last 1-6 months current account statement(s), depending on the lender, in
       order to show income paid in each month and financial commitments paid out
       each month.
       A credit search will be carried out by most lenders or you will be asked to provide
       a credit search that you have applied for yourself.
       Some lenders require the last mortgage statement for the mortgage on your home
       if any, or the rental agreement if you rent your home.

                                           - 19 -
   5. Other

Some lenders will require a statement from the applicant giving owned property values,
amount of mortgages outstanding, monthly mortgage repayment figure, and monthly
rental income if any.

In some cases a reference letter from your home bank or a letter of authorisation allowing
the Spanish bank to contact your home bank may be required.

When carrying out any sort of economic transaction in Spain, such as the opening of a
bank account, applying for a mortgage or a property purchase, it is necessary to apply for
an NIE (Numero de Identificacion de Extranjeros). This can be done via your chosen
solicitor or in any of the UK Spanish General Consulate offices, and we can advise you
further on this.


                                          - 20 -
 TYPE OF INFORMATION                                               Tick
       REQUIRED                                                    List

      Personal Details        Passport
                              Utility Bill

     Financial Details        Most recent bank statement(s)
                              Credit search
                              Most recent mortgage statement

      Property Details        Preliminary Contract
                              Land registry documents
                              First occupation license
                              Rental agreement

 Income from Employment       Last 3 payslips
                              Last P60 (s)

Income from self employment   Last 2/3 profit and loss audited
                              Last 1/2/3 tax returns
                              Accountant’s letter
                              Latest business current account

           Other              Self declaration of property
                              Bank reference letter or signed
                              authorisation form to contact your
                              home bank

                              - 21 -
Once you have decided to make a mortgage application with the assistance of Assetz
Finance, you will be required to complete and submit the Mortgage Fee Form to your
Finance Consultant at the same time as you provide them with your supporting
documentation. This is to authorize them to work on your file and charge their up front
As we are confident in our ability to secure a mortgage for you we do not feel that we
need to wait before charging you. We have found from past experience that clients have
preferred to pay the fee up-front so that it is done.
To our knowledge, there is no other company in the market offering as comprehensive a
service as Assetz Finance without charging a fee of some type. This is because the
commissions received by brokers from overseas lenders are very minimal and cannot
cover all the time and resources required in order to be able to offer the type of high level
of service that we do. Our non-charging competitors are subsequently unable to offer the
amount of time and assistance that our services involve. In comparison to other overseas
mortgage brokers that charge a fee, we have found that Assetz Finance consistently
charges less.
We have received feedback from our past clients that indicates that our fee is very
reasonable and have given some examples in our feedback section. If you would like to
see the original feedback form or to talk to one of our past clients about the service they
received please contact us.
If in the event that we do not find a Spanish lender who will accept your mortgage
application, you will receive a refund from Assetz Finance of the full amount paid up-
However, Assetz Finance applicants are never refused a mortgage as our Finance
Consultants carry out a very thorough pre-approval to ensure that our clients only apply
to lenders that will accept their application.
If we know that we will not be able to secure a Spanish mortgage for you once we have
analysed your financial situation, we will make this clear in the very beginning so that
you can start making other arrangements for purchasing your property straight away. And
in this case, all of our advice will have been free of charge.

                                           - 22 -
Please note that if you sign up to our service within one month of submitting a Spanish
Mortgage Pre-Approval Form you will benefit from a discount of £100 on our service

Therefore if you sign up to our service within one month of submitting the Spanish
Mortgage Pre-Approval Form the fees would be:

       For mortgages of more than 150,000€ - £250
       For mortgages of between 75,000€ and 150,000€ - £350
       For mortgages of less than 75,000€ - £550


       For mortgages of more than 150,000€ - £350
       For mortgages of between 75,000€ and 150,000€ - £450
       For mortgages of less than 75,000€ - £650

                                        - 23 -
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           The Assetz Finance Pre Approval Form


Please complete and return to

You will then be allocated your Personal Finance Consultant who will check
that you fit Spanish lending criteria and will contact you with information on
the mortgage solutions that would be available to you.

Please specify if amounts are in € / £ / $.

Please complete ALL sections giving as much detailed information as
possible and state N/A if the section is not applicable to your circumstances.

Please make sure that you give us at least one example of assets that you
own (savings/shares/ISA’s/bonds…) in the assets section of this form.

Please be aware that this is not a mortgage application form. This
questionnaire is used by Assetz Finance and our carefully selected partners
in order to produce quotations for the best mortgage solutions available on
your intended purchase. You will be required to complete an application form
and give these details again once you have chosen a lender and are required
to complete their forms.
Personal details:

                                               Applicant 1          Applicant 2
 Place of birth
 Your country of residence
 (for tax purposes)
 Your home address
 Tel No.
 Mobile No.
 Email address
 Marital Status
 If married, date & place of
 No. and age of dependents

How did you hear from us?
Internet search, newspaper/magazine article, through friend, etc:

Do you require the Assetz Purchase Assistance Service?


Proposed purchase and required mortgage details:

 Your Estate Agent name and
 The Name and Address of
 the Seller
 Name and Address of your
 Legal Representative
 Full Property address
 NET property price (excl
 Type of property: Second
 home/Leaseback/ Farm/
 Gite/ B&B…
 Are you intending to renovate
 the property? Do you wish to
 finance the cost of such
 refurbishment and how
 Is the property habitable?
 Total deposit available
 (please specify where this is
 coming from, ie savings, etc)

 Are you aware of the
 purchase costs that will be
 due on this property
 transaction and are you
 aware that it is very unlikely
 that these costs will be
 covered by the mortgage?
 Mortgage amount required
 Mortgage length required
 Type of mortgage required
 (capital repayment/interest
 (fixed/variable interest rate)

Income details:

If employed by a company (ie you have P60’s – or equivalent- and payslips available to prove your income):

                                              Applicant 1                                 Applicant 2
 Occupation since (year)
 Employer’s address
 Employer’s phone number

 Employed since
 Nature of employers activity
 Current annual Gross
 P.A.Y.E. income (Please
 break this figure down into
 salary, commission, bonus,
 benefits if any)
 Current annual Net P.A.Y.E.
 Amount stated on your P60
 that you received in April
 2007 (NET)
 Amount stated on your P60
 that you received in April
 2006 (NET)
 Amount stated on your P60
 that you received in April
 2005 (NET)
 Any miscellaneous
 information on past
 employment background

If self employed/free-lance/company owner/company shareholder (ie you have tax returns – or equivalent- and
company accounts available to prove your income :

 Company name and

 Business activity of the
 Position in the company and
 number of employees if
 Accountant's name &

 Company exists since
 Legal form of the company
 Your share of the company
 Annual turnover of the
 Annual profit of the company
 Your NET personal income
 from the company declared
 on your 2007 tax return if
 already available (please
 break this down by giving
 how much is paid in salary
 and how much is paid in
 dividends if applicable)
 For 2006

 For 2005

 For 2004

If retired, please provide income information showing on your pension statements or equivalent:

 For 2006

 For 2005

 For 2004

Property owned: (please include your main residence as well as buy-to-lets if any)

 Who owns                                 Estimated         - Mortgage outstanding            Monthly         Monthly
    the                address           value of the       - Mortgage provider               mortgage         rental
 property?                                 property         - Mortgage type                  repayment        income


                                            Description (eg shares,
               Owner                                                                              Value
                                           savings, ISA’s, PEP’s…)
                                         (NB: cars, antiques, art work
                                          are not taken into account)

Monthly outgoings:

                                       Applicant 1 (please          Applicant 2 (please            Amount of loan
                                        give amount paid             give amount paid             still to be paid off
                                          each month)                  each month)
 Credit Card Repayments (do not
 include if you pay off the balance
 every month)
 Bank Loan
 Car Loan
 Council Tax
 Do you have an overdraft facility
 and are you using it?
 Child maintenance payments
 Other (please specify)
 Total Monthly Outgoings

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