THE MORTGAGE PROCESS

Here is a simple step-by-step guide to how the mortgage process works with Mortgage Direct.


STAGE 1
Contact Mortgage Direct
Complete the Enquiry Form online, or alternatively contact us by phone and we can assist you in completing the form. Of course, if you just want to call us for an informal discussion, please do not hesitate to do so. The Enquiry Form is designed for speed and efficiency to enable us to find the best mortgage for you with the most appropriate bank. We will not ask for unnecessary information at this initial stage.

STAGE 2
Mortgage Proposal
After receiving a completed Enquiry Form, a fully qualified adviser will contact you to discuss your options and a mortgage proposal will follow shortly thereafter. They will advise you on the terms of the mortgage, such as monthly payments, level of borrowing, interest rates, fees etc.

STAGE 3
Lawyer
If you are purchasing a property, at this stage we strongly suggest you appoint a Lawyer to protect yourself against potential pitfalls when buying abroad. They will ensure all the necessary checks on the property are carried out, including a full search report and checking the legal status of the property. Also, completion of the mortgage is not possible until you have applied for an NIE number, which your Lawyer can help obtain for you. If you are mortgaging or remortgaging an existing property you may not feel the need to appoint a Lawyer – this is up to you. There are good reasons for appointing one, although some may argue against it on cost grounds.

STAGE 4
Documentation
If you wish to proceed and have found a property, or wish to mortgage/remortgage an existing property, you will need to send copies of various documents to us. Your adviser will confirm what is required. You will normally need to sign a Purchase Contract and pay a reservation fee/deposit – the estate agent usually arranges this part of the process. At this stage, you will also need to send us a signed copy of our Terms & Conditions and arrange payment of our Administration Fee (see Charges).

STAGE 5
Valuation
A bank account will usually be opened in your name with the chosen bank. Your future monthly mortgage payments will be paid from this account and funds to cover the Valuation Fee will normally need to be transferred into it. Once the Valuation Fee is deposited into your account, the valuation will be instructed and a valuation report will follow. It is always the responsibility of the client to pay the Valuation Fee.

STAGE 6
Final Offer
On the strength of the value of the property and the documentation provided, the Head Underwriter of the appropriate bank will provide the final mortgage offer. Once it has been agreed how the mortgage funds will be distributed, the bank can arrange the necessary transfer of funds, usually by drawing certified cheques for the relevant amounts, for the purchase to take place on the day of signing. The Notary or your Lawyer should confirm these cash distributions to you in writing.

STAGE 7
Exchange & Completion
An appointment must be made at the Notary´s office to sign the deeds. Both the buyer and seller will be present, unless one or both parties is being represented by a person or persons with Power of Attorney. You will also need to pay the outstanding Arrangement Fee for Mortgage Direct on the day of signing.


Congratulations!
You are now the proud owner of your property in Spain!

We anticipate the above process will take between 4 and 6 weeks. Please bear in mind that August is traditionally a holiday month in Spain and although banks will not be shut, many staff take extended holidays, which may lead to delays.