How big a mortgage can I get & what proof of income is required?

Please note, that there are no non-status/certification mortgage facilities available in Ibiza (although renting out your property is permitted), all loans need to be supported by a minimum requirement of proof of income,

• if employed – copies of your last three month’s payslips & of your latest P60/Employer’s Reference together with copies of your last 6 month’s Personal Bank Statements will be required
• if you are self-employed – copies of your last three years Audited Accounts & copies of both your last 12 month’s Business and last 6 month’s Personal Bank Statements will be required on application.

Unfortunately in Ibiza the Spanish Lenders will NOT take into consideration any proposed Rental Income from the property for mortgage purposes/repayments.

Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (i.e.: Divorce) payments together with your proposed Spanish mortgage payments must not exceed 35% of your net monthly income.

Example:

Net joint monthly income €2,500 times 35% of that figure is €875 minus existing monthly mortgage payment €300 – No other liabilities.

This leaves a balance of €575 for a proposed Spanish Mortgage payment.

Calculate your mortgage here

Stage Payment mortgage In Ibiza.

Please note, that if the property is to be constructed and stage payments are to be required, the land must be purchased from you own funds and also registered in your own name’s – not the Builder / Developer’s – in order for the proposed Lender to obtain a legal charge against this and also to enable them to secure funds against it. Without this legal registration the Lender will not release any funds until the property is fully constructed and registered (which will mean upon completion of the total building works).

Alternatively if this is not possible, when the property is fully constructed the Builder / Developer’s must provide the Lender with the ‘Certificate of Final Construction’ , thus enabling the Lender to take a charge against it and release the required amount of funds.