Indicative loan-to-value
Many non-resident applications are considered around 60–70% loan-to-value, although the result can be lower or higher depending on nationality, income, currency, property and lender.
Cash contribution
The buyer needs the part not financed by the bank and a separate amount for taxes and acquisition costs. A realistic cash plan should be made before viewings.
Income and affordability
Lenders review net income, existing debts, employment or business history, age, currency and the proportion of income required to service all loans.
Bank valuation
The loan percentage is normally applied to the lower of the agreed price and the bank valuation. If the valuation is below the price, the buyer must fund the difference.
Documents
Typical files include bank statements, tax returns, employment or company documents, evidence of savings and existing debt. Documents may require sworn translation.
Financing condition in arras
Where the purchase depends on finance, the legal adviser should consider whether and how a mortgage condition is written into the arras agreement.
Frequently asked questions
Can I obtain a mortgage before I have an NIE?
A lender can often begin a preliminary assessment, but the NIE will be needed for the formal transaction and banking process.
What if the valuation is lower than the price?
The maximum loan is recalculated from the lower valuation, increasing the cash the buyer must provide.
This guide is general information, not individual legal, tax or mortgage advice. Rules, rates and lender criteria can change. We coordinate the relevant independent professionals for each purchase.