Last week we did explain that nearly half of Spanish workforce have a salary of around 1,000 Euros, after tax and Social Security deductions, according to data released by the National Statistics Institute (INE) provided by the last Wage Structure Survey.
We also drew a parallel with the number of expats pensioners and part time employees that also may be getting similar incomes and for whatever circumstances they may wish to buy a property here in Spain.
As it was mentioned there are some Spanish banks that may help you even if you earn 600€ a month, however it is imperative to comply with a number of prerequisites before the battle of obtaining a mortgage is won.
I am not just a number!!
It was of vital importance to have a good relationship with the bank. If the bank recognizes that you have been working with them for a reasonable time and you seem a pretty sensible chap then you have a big point on your favour to obtain one of these mortgages.
It is better to have a mate.
Yes your private life shouldn't influence the bank but I am afraid that it does. A strong point on your favour is if you are married or have a bona fide mate. The first qualification that they must consider is whether the future "one thousand Euros" mortgagee lives alone or has a partner. This distinction is not trivial. If you plan to carry out a solitary life keep in mind that the number of choices is greatly reduced, since most lenders offer these loans on the condition that the income of the family unit above a level of about 2,000 Euros.
A question of percentages.
In this case, three entities require their customers' minimum recurring income of 600 Euros. The first is La Caixa, which has its "Hipoteca Bonificada", obtainable from this amount and its interest is usually placed in the vicinity of Euribor + 1.90%. This interest, however, is variable depending on the relationship that a customer has with the bank. ING Direct also has a product of Euribor + 1.49% which has no fees and requires the hiring of a life and a home insurance.
The requirement is that the client has a minimum income of 600 Euros or an average account balance of 2,000€. The trio of these offers is completed by the "Mari Carmen" Mortgage, a credit at 1.75% from Abanca on Euribor (2.80% the first year) it is also imperative to have a minimum income of 600 Euros and requires a home and life insurance, plus other payment protection for these conditions.
Other banks might do it.
The other entities listed below may conclude their various products with a minimum income that is computed on the family unit. At this point there are five additional listed banks. One is Bankinter, which have lowered the interest on loans from 1.70% to 1.50% over Euribor (2% the first year).
This product requires the debit combined revenues of 2,000 Euros and three main receipts and the hiring of a life insurance and home. It has not been the only large entities mover in the market of products at variable interest. BBVA also offers a mortgage at Euribor plus 1.60% (2.27% for the first twelve months) which requires an income of 1,500 Euros (or 2,000 Euros per household), they also require life and housing insurance contracted with BBVA, make use of the credit card with a minimum contributions of 600 Euros per year and....a take out a pension plan with the BBVA of course.
Obviously we cannot pretend that with a 600€ salary the bank forks out a mortgage for a property worth half a million Euros. As a guide banks provide mortgages following more or less the following scale:
For salaries lower than 2,000 Euros may only be able to get a mortgage of 100,000€ or perhaps a bit less, those earning between 3,000€ and 4,000 Euros, 200,000€, higher wages can hope for mortgages of 300,000 Euros or even higher.