Mortgage DirectDirect mortgage
dictionary of mortgages
This page is intended to give an easily understandable definition of terminology that is often used when purchasing a home in Spain, as well as terminology related to our pricing structures. 495 charge to be paid to Mortgage Direct if you choose to make a mortgage request. There is a money back guarantee on this charge (see below and also our General Conditions).
Fees you must owe Mortgage Direct for procuring a mortgage. Default is 0.5% of the mortgage amount (minimum 1000) due on termination. In the case of large mortgages, this amount may be negotiated on a time and material basis. It is the amount that the originator of the mortgage charges to the originator of the mortgage and is sometimes known as the originator's commission.
Default charge is 1% of the mortgage amount. A number of commercial banking institutions have minimal opening charges that are levied when the mortgage amount is below a certain threshold. In this case, the sale and mortgage agreements are concluded before a solicitor and the purchaser becomes the juridical proprietor of the real estate.
It is the document that legalizes the sale and is executed for or on account of the purchaser and the vendor and then authenticated by a solicitor. Purchasers receive a first copy of the certificate as soon as all tax has been settled and the detailed information has been entered in the cadastre.
In Spain, all floating interest mortgage loans are now Euribor yearly, generally known as " the Euribor ". Though there are 8 different interest levels (monthly, semi-annually, etc.), it is the Euirbor that almost all mortgage lending is done by a bank. Euribor interest spreads are calculated on the basis of the interest spreads at which a panell of euro area financial institutions borrows money from each other.
If a mortgage claimant does not have enough revenue to meet a bank's credit requirements, he may add one or more guarantees to his mortgage claim. As a rule, the sponsor is a closely related relative and undertakes to secure the mortgage if the principal claimant has been unable to maintain the repayment.
Guarantors may be a child whose parents are near the legal mortgage limit, or a child whose children have a low level of incomes. Here the Spanish Land Registry stores details of all real estate.
Contains the unambiguous ownership identification, the name of the owner and their identification numbers as well as the real estate itself details/photos. It is the common expression used to describe the relationship (expressed as a percentage) of the mortgage amount to the sale consideration or the lower value.
Mortgage Direct guarantees this to its customers by refunding our management fee of 495 if the mortgage is refused or the amount quoted is lower than our original offer and a customer does not wish to continue. Please also note our General Business Conditions.
These taxes are calculated on the mortgage amount (not on the real estate price), which is why we call them the "mortgage tax". Stamp Duty", a UK stamp duty on the sale value of a home, is what many sites call it, and it is sometimes unclear what this is.
This amount itself differs from area to area, but is to be a legal amount consisting of the mortgage amount, 3 annual interest and " cost ". Like the " property transfer tax " below, the amount differs from area to area and many sites provide contradictory information about effective tax levels.
It is an identification number for foreign nationals who are registered with the Spanish government and the applicant receives an officially issued certificate with their name and number. The number must be presented for various formal transaction and it is important to have a NIE number if you want to buy a home in Spain.
It is a juridical documentation that is regularly revised and contains the ownership register detail. Out of this documentation, a banking and/or appraiser can certify who is the formal proprietor of the real estate, what is recorded in relation to the object, what is the real estate rating (urban or rustic) and whether there are any fees on the real estate, for example if there is a mortgage.
This is a very important voucher for creditors as they will use it to determine the eligibility of a mortgage loan home. A buyer of a real estate may not be able to stay in Spain for finishing, open a banking or other formal purpose.
This requires a power of attorney (POA) or a "Poder", as it is known in Spain. It differs in that it contains the amount of cash the purchaser pays for the real estate, the amount of the security and the other terms of the contract between the purchaser and the vendor.
They differ in their contents, but it is typically the case that the personal sales agreement contains the formal security fee, which very often amounts to 10% of the sales value. When you buy a used home in Spain, i.e. a home that has already moved, you have to owe a fee calculated on the house value.
It is known as Impuesto Transmisiones Patrimoniales (ITP), but we often call it a property duty. Amounts vary from area to area and some areas have a set amount for all real estate, while other areas have control tapes. Like the above "mortgage tax", many sites provide contradictory information about effective mortgage rate levels.
That is the punishment for early repayment of the mortgage before the end of the mortgage period. This is the legal limit for new mortgage loans and almost all bankers use it as their usual repayment sanction. of the mortgage in the first 5 years, the fine would be 50 ?.
As a rule, this agreement is concluded at the point at which the purchaser makes a down payment for the booking of the real estate. They contain particulars of the down payment and other terms and condition of the booking, which usually cover the period of advance given to the purchaser before he has to conclude a personal sale agreement setting out the terms and condition of the sale itself.
Real estate in Spain is usually considered to be municipal or rural property. Unlike what many customers think, this does not mean that all real estate is outside a village or town on a property that has been rated as rural. Many rural real estate objects are actually considered "urban", i.e. on municipal lands.
In general, country plots are plots in the countryside that have been constructed on old farmland. There is less interest on the part of bankers in offering mortgage loans on country estates, and some will not grant loans at all. Russian plots have much tighter design regulations. Occasionally, appraisal firms do not evaluate Russian plots.
It' important to stress that we have many mortgage arrangements for customers who buy rural plots, and we do. It is possible to reach the maximal loan amount for municipal objects on rural objects, i.e. up to 70% of the purchasing amount for non-residents and 80% for tax-payers.
Prior to granting loans, a credit institution is legally obliged to evaluate the value of the real estate. The majority of MFIs will issue a rating order once the mortgage is authorised, but there are also MFIs that request a rating at the beginning of the mortgage claim procedure. Buyers are always responsible for paying for this evaluation.
These taxes are due on the sale of a new home in Spain. Purchasers become the first owners of the new real estate. It is a different type of taxation than the "land transfer tax" described above and a purchaser would never be able to afford both. In the case of a new real estate, the purchaser directly transfers the taxes to the developer as part of the sales proceeds.