I’ve finally sorted out the mortgage for my house in a small town, and the process was quite a story. I wanted to share my experience while it’s still fresh in my mind, hoping to offer some guidance and help others avoid some pitfalls if you’re also dreaming of buying a little house in the countryside for a peaceful life.
Choosing a Bank: Big National Bank or Small Local Bank?
Initially, I naturally assumed that going with major national banks like Santander or BBVA would be the safest bet. However, after visiting several branches, I found that they seemed more cautious when evaluating properties in small towns and offered more conservative loan-to-value ratios. This was especially true for foreigners like me with a non-lucrative visa, as they prefer stable assets in big cities. Later, on a friend’s recommendation, I tried approaching a few local savings banks, and things took a positive turn! They had a better understanding of local property values, their approval process was more flexible, and the terms they offered were more favorable. So, the bottom line is: don’t just stick with the big banks. Check with local smaller banks; you might be pleasantly surprised with the Spanish mortgages they offer
!
Document Preparation: More Complicated Than I Thought
No matter which bank you choose, the required documents are more or less the same, but each one must be prepared meticulously. The bank manager reviews the documents very carefully, and any ambiguity can lead to requests for additional paperwork, which can cause significant delays. Here’s a checklist of the core documents I prepared:
| Document Type | Details |
|---|
| Identification | Original and copy of NIE and passport |
| Proof of Income | This is crucial! You need to provide bank statements from the last year, tax returns, or payslips. |
| Proof of Assets | Deeds to other properties, bank deposit certificates, etc., to demonstrate your repayment capacity. |
| Property Information | Preliminary purchase agreement (contrato de arras) |
| , property registry information (nota simple). |
| Credit Report | Some banks may request a CIRBE credit report. |
A special reminder: banks require official sworn translations (traducción jurada) for all non-Spanish documents. This cost should also be factored into your budget.
Mortgage Type: Fixed or Variable Rate?
This is the million-dollar question. With the current instability of the Euribor, I ultimately chose a fixed-rate mortgage. Although the monthly payment might be a few dozen euros higher than a variable rate, it offers peace of mind. At least for the next few decades, I’ll know exactly how much I need to pay each month, which makes long-term financial planning easier. The fixed rates I was quoted by several banks were between 3% and 4%, depending on individual circumstances and the loan term. In the current economic climate, locking in a fixed rate seems to be a safer choice.
The entire process, from first contacting the banks to the final signing, took me nearly three months. There were significant delays due to requests for additional documents and the banks’ internal approval processes. So, if you’re also planning on getting Spanish mortgages or home loans in Spain for a house in a small town, be sure to allow plenty of time and be patient. Although the process was a bit of a hassle, being able to buy my dream house and enjoy a coffee in the sun every day makes it all worthwhile! I hope my experience can be helpful to you all!
