Foreigners can apply for and receive loans at Spanish banks, if they will prove relationship with the country (buying real estate, availability NIE or residence permit). Conditions and interest rates can vary in different banks and cajas. Large banks often do not lend foreigners, and require a lot of documentation. More friendly are small banks, called cajas due to their policies of the loans issuance for non-residents.
Mortgage rates are practically the same for foreigners and native Spaniards. Currently, the percentage of mortgages in Spain is very low, because it depends on the rate of Euribor plus 0.75% – 1%. On the redemption of mortgage builder the mortgage are is 2.5% per cent per annum, in case of opening of the new mortgage – not more than 3.75%. Usually a mortgage does not exceed 50-60% of the value of the property, if the banking assessment agrees or above the purchase price.
Funds issued by the Bank for mortgage may be used only for the purchase of the property, so the banking specialists make their own assessment of the mortgage facility. In mortgages there are two types of warranties: personal (job, accounts movements, salary) and real guarantee (property itself), which actually allows you to store low mortgage rates.