Useful information

Mortgages

Corridor

If you want to take over the mortgage (subrogate) offered you by Alicur, the first thing you should do – after purchasing the property – is to open an account at our bank. That way, when you ask them to transfer the mortgage over to you, you will already be a client and the terms and conditions will be more favourable.

Documents needed.

Regardless of who you want to mortgage your property with - whether you are taking on the mortgage offered by Alicur or taking out a new mortgage - you will need the following documentation:

a) If you apply as an individual (physical person):
Identification :
  • DNI (National Identity Card) or Residency Card or Passport and N.I.E (MUST be originals – photocopies not accepted)
  • The previous year’s Tax Declaration or, if you have not presented one, your Official Employment History (Vida Laboral - available from the Social Security Office) and Tax Retention Certificate (Certificado de Retenciones).
  • Your employment contract.
  • If you currently rent a property, a copy of the lease.
b) If you apply as a self-employed individual (physical person):
Identification :
  • DNI (National Identity Card) or Residency Card or Passport and N.I.E (MUST be originals – photocopies not accepted).
  • Self-employment certificate
  • Trading account and balance
  • Tax Declaration
  • Bank statements for the last year
  • If you currently rent a property, a copy of the lease.
c) If you apply as legal person (in the name of a Company):
Identification :
  • DNI (National Identity Card), or Residency Card, or Passport and N.I.E, as well as Company Documents – CIF (company tax code), the Corporate Charter and subsequent Charters (MUST be originals – photocopies not accepted).
  • Tax Declaration.

Basic mortgage terminology.

The variables that you will find in a mortgage are basically the following:
  • Interest rate: this can be variable or fixed, though 99% of clients choose a variable rate. The end rate normally consists of adding a fixed amount – between 0.5% and 1% - to the Euribor index. The Euribor is set by the Banco de España and published monthly. The bank adjusts the interest rate once a year, which means that you will have the same mortgage payments for a year at a time.
  • Subrogation fee: (can vary between 0.5% and 1% of the value of the mortgage) and is a fee that must be paid should you decide to take over the mortgage offered you by Alicur. If in addition to taking over the existing mortgage, you also decide to modify the initial conditions of said mortgage, you will have to pay an additional Novation fee (consult amount with bank). Should you decide to refinance the mortgage, you will also have to pay a Refinancing fee (consult amount with bank).
  • Opening fee: this is a fee that you will have to pay the bank you take your mortgage out with (consult amount with bank)
  • Cancellation fee: this is basically divided into a Partial Cancellation Fee and and a Total Cancellation Fee. Each bank’s fees are different, though they typically vary between 0.5% and 1% of the amount cancelled.
  • Repayment period: this is the period of time over which you will repay your mortgage.