There are several different types of mortgages that you can avail of in order to find financing for your property in Spain. It’s really a lot easier than people think and all you have to do is to make calls, visit websites, and look through the brochures to find the best deal given your financial situation. Here are some types of mortgages.

- Capital and interest mortgage : Repayment of the loan occurs during the term and you pay interest over the current loan amount. Usually the monthly payments arehigher than with an interest only mortgage. The loan to value is maximised on 80%.

- The Interest only mortgage : with this kind of mortgage the actual borrowed amount or principal will stay the same throughout the term. During the term you will only pay interest. The highest interest only mortgage is 70% loan to value.

- Combined mortgage : It’s possible to get the best of both worlds by combining the two mortgage types. You only have to pay the interest during the first part of the term, either a third of the term or a fixed number of years.

Getting loan approval is not that difficult either. Here are some requirements of some banks,

- Age : most banks in Spain will grant a loan if you are seventy and below although there are those that will be given a loan even if they 80 or 85 years. In some cases it is possible to let somebody younger, i.e. a child, co-sign the mortgage in order to stretch the term.

- Net income : You can use approximately 40% of your net income on mortgage payments.

- Valuation of the property : The bank will need to have a taxation done by an independent agency. They will normally choose which organization will perform this task. Most banks will base the mortgage on the valuation and the actual selling price. They will choose whichever is lowe Some banks use solely the valuation. With these banks you can, if the valuation is considerably higher than the selling price, get one hundred percent financing. In most cases you should realise that you have to invest some 30% yourself.

- Resident or non-resident : Residents can, with restrictions, get better deals than non-residents.

- First or second home : Is of importance to some banks since for them it will mean you are less likely to flee the country, as you already have existing property. This minimizes their risk.