Step 1 – Contact Mortgage Direct
Complete the enquiry form online, or alternatively, contact us by phone and we can assist you in completing the form or deal with any general queries you may have. The enquiry form is designed for speed and efficiency to enable us to make an initial assessment of the best mortgage for you with the most appropriate bank. We will not ask for unnecessary information at this initial stage.
Step 2 – Mortgage quote
After receiving a completed online enquiry form, one of our advisers will contact you to discuss your options and a mortgage quote 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. We aim to send out quotes within 48 hours of your initial enquiry.
Step 3 – Documentation
If you wish to proceed and have found a property, or wish to finance an existing property, you will need to send copies of various documents to us. Your adviser will confirm what is required. At this stage, you will also need to send us a signed copy of our Terms and Conditions and arrange payment of our Administration Fee, which is €495 (see Charges for more information on our fees).
Step 4 – Lawyer
You will normally need to sign a reservation contract and pay a reservation fee/deposit at the start of the purchase process – the estate agent usually arranges this part of the process. Before you sign any contracts, we recommend that you appoint a lawyer (see Legal advice). 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.
Step 5 – Valuation
A bank account will need to be opened in your name with the bank arranging the mortgage. Sometimes this is done at the outset and other times after the formal approval has been granted. Most banks instruct a valuation after the formal approval but some require this to be done at the start of the process. Monthly mortgage payments have to be paid from this account and funds to cover the valuation fee have to be paid into it before the valuation can be instructed. When instructing the valuation, the bank will usually select a company at random from the panel of independent companies it uses for valuations. The selected company will send one of their valuers to the property by prior appointment. After the visit, the valuer will prepare their report and then send it to the bank.
Step 6 – Formal approval
On the strength of the value of the property and the documentation provided, the credit department (underwriters) of the appropriate bank will approve or decline the mortgage. If approved, the bank will confirm the final conditions. Assuming all parties are in agreement to proceed, the bank will then liaise with you, the agent and both lawyers to calculate the funds that you need to have in your account. Once the funds are in place, the arrangements for completion can be made.
Step 7 – Completion
An appointment must be made at a notary office to sign the deeds. You or your legally appointed representative must attend the completion. If you do not attend, your legal representative must present a suitable ‘Power of Attorney’ (‘Poder’ in Spanish) document. Usually, just prior to completion, we will request payment of the outstanding Arrangement Fee for Mortgage Direct.
How long should this all take?
The timescales involved vary from bank to bank and at different times of the year. We usually say to allow at least 4-6 weeks for the whole process and it can take up to 8 weeks to complete, sometimes longer if the holiday month of August falls in between, or if you have a complicated profile.