SPANISH MORTGAGE PROCESS
Our step by step guide to the Spanish Mortgage product. This guide will take you through all the steps, enabling you to track the process from making your application (the documents for which can be found under the How to Apply tab) to completion day.
1 INITIAL DISCLOSURE
Review the information about us and about how we will provide our mortgage service to you.
2 APPLY FOR A MORTGAGE
Complete your mortgage application form, tick your customer selection form, complete the cover letter and collate your supporting documents.
3 DOCUMENTS REQUIRED
Under this section a list is included for your reference detailing documents you need to provide us to support your mortgage application.
4 SEND US THE MORTGAGE APPLICATION
The details of where to send your completed application form, supporting documents and customer selection pack to us are:
- by email: firstname.lastname@example.org
Spanish Mortgage Department
One Canada Square
5 RECEIVING YOUR SPANISH MORTGAGE APPLICATION
We will acknowledge receipt of your Spanish mortgage application form. We will also ask you to give us a declaration agreeing to an execution-only mortgage process.
We will send you our European Standardised Information Sheet (ESIS). This is our pre-contractual disclosure document which sets out the key terms of the mortgage you have selected.
After you have had the chance to review the ESIS, you should confirm to us whether you wish to go ahead with a formal mortgage application by sending us a signed "Formal Application Letter", the template for which we will send you by email or post if you prefer. When we receive your signed Formal Application Letter, we will carry out an affordability assessment which may include a credit check, using an external credit reference agency and we will consider your ability to repay the mortgage based on the information you have provided to us.
If all our checks and assessments are completed and we approved your application then you will be allocated a dedicated personal account officer who will contact you to assist you with the mortgage completion process.
8 ACCOUNT OPENING UK
Your personal account manager will liase with you to open a current account with BBVA in the UK. We will require you to complete the forms and return with the documentation requested in our “Proving your Identity leaflet” which will be enclosed in the pack. Once the account is opened we will inform you of the account details.
9 ACCOUNT OPENING SPAIN
Your personal account manager will send you the necessary forms to open a bank account with BBVA Spain. For your convenience we open the account with a branch that is nearest to the property you are purchasing. Alternatively if you have a preference for a particular branch please let your account officer know. We will require you to complete the forms and return them with the documentation your account officer will request from you. Once the account is opened we will inform you of the account details.
We will request the valuation. The valuers are randomly picked from a panel of independent BBVA approved valuers in Spain. At this stage you will need to transfer to BBVA UK sufficient funds to cover the cost of the valuation and the arrangement fee.
11 LEGAL PROCESS IN SPAIN
Garsa (Gestores Administrativos Reunidos, S.A.) is a mortgage administration company located in Spain who will assist us with the process of obtaining the mortgage over your property in Spain. Please be aware that GARSA act for us and they will only be involved in so far as is necessary to prepare, sign and register the mortgage. They will not be available to assist you on the purchase aspects of the transaction and you should have your own solicitor in Spain who will help you manage this.
GARSA will provide us with the “Provision de Fondos” which is a document that details the costs associated to the mortgage aspect of the transaction. These included Spanish Law taxes, Spanish administration fees, Notary Fees, Mortgage registration fee. This will not include our arrangement fee or any fee charged by a solicitor acting on your behalf. They also do not include fees, taxes and charges related to the transfer of the property to you. You will need to liaise with your solicitor regarding these fees.
Once we have the “Provision de Fondos” we will ask you to transfer funds to cover the amount to your BBVA account in Spain.
Our administration department in Spain will prepare the legal documents needed to complete your mortgage including the Spanish law mortgage document called the “Escritura”. This document outlines the exact terms and obligations of the lender and the mortgage. We will let you know at which Notary the Escritura will be signed. The offices are normally near to the BBVA Spain branch where your account is held.
12 OUR OFFER DOCUMENT
We will send you our binding offer letter for signature. If you wish to go ahead with the mortgage you will need to sign and return the offer letter to your personal account officer.
13 BUILDING INSURANCE
You will need to arrange for building insurance on the property you purchase. You will need to forward a copy of the policy to us before the day of signing. You will need to arrange for BBVA Uk's interest to be noted on the policy. You can request a quote from our BBVA Spain branches for building insurance if you wish.
14 DAY OF SIGNING
The signing of the Escritura takes place on the day of completion at the Notary's office in Spain. A representative of BBVA, a representative of Garsa, the Notary, your appointed solicitor and yourselves if you choose to be present, will meet to sign the document. If you do not wish to be present then you can arrange for a power of attorney to be created in favour of your solicitor and they can sign the escritura for you.
The mortgage amount and fees are then transacted and the purchase completed.
15 POST COMPLETION
After the mortgage agreement and the Spanish law mortgage are signed, our administration team in Spain will register the documents with the relevant Spanish authority. You may have to pay fees, charges and taxes associated with the mortgage and the purchase of your Spanish property. The money for these will be held and paid by our administrator or the notary.
Congratulations on purchasing your Spanish property!