How long can a mortgage last?
As a general rule, the maximum repayment period for a mortgage is 30 years, although some institutions can extend it to up to 40 years. However, depending on the age at which you take out the mortgage, this period can also be reduced down to 15 years.
What expenses does getting a mortgage entail?
Today’s your lucky day! Not that long ago, this answer would have been longer, but thanks to the legislative reform of the mortgage law of 2019, you will only have to pay for the simple note of registration of property, the valuation of the property, and the bonds.
The AJD taxes, the notary's office, the land registry, and the agency, are paid for by the bank where you open the mortgage.
What’s the minimum amount I must have?
As a general rule the bank will ask you to have 30 to 35% of the value of the property in savings. This amount varies depending on the amount that you want to finance.
The mortgage costs (notary fees, registration fees...) usually represent between 10% to 13% of the value of the property. On top of that, you’ll have to add the percentage of the property that you are not going to finance (usually 20%).
What’s a mortgage and what amount can I ask for?
A mortgage is the total money that the entity gives you as a loan. In other words, the amount you request from a bank in order to be able to buy a home.
Although you may be tempted... it’s very rare for banks to grant 100% of the value of a home, so we recommend that you do not apply for such a high mortgage amount.
What are the different types of mortgages?
Fixed-rate mortgages: when the interest rate does not change during the agreed term, so the instalments will always be the same.
Variable rate mortgages: the monthly instalments change over time depending on the Euribor, in each review period. The advantages are that the instalments are lower at the beginning, and even more so now that the rates are negative. On the other hand, you cannot know what will happen in the future, and the quantity of your instalments will depend on the evolution of the interest rates.
Mixed-rate mortgages: this is when the mortgage combines a fixed rate with a variable rate. Normally the first years it is a fixed rate, and then it changes to a variable rate.
What’s the Euribor and how does it affect mortgages?
Euribor is the interest rate at which banks lend to each other. It is also the reference rate for mortgage loans in Spain. This means that interest rates change in relation to the evolution of the Euribor.
What’s the amortization fee of a mortgage?
It is the monthly amount that you’ll need to pay the bank for your mortgage. Part of this payment will be the full repayment of the amount you have requested and the other part will be the interest the bank charges you for lending you the money.
What’s a mortgage?
A mortgage is a type of bank loan which is characterised by a longer duration and a lower interest rate than other loans. They’re a financial tool that allows people to buy a home without running out of funds to go about their normal lives. The main difference of this type of loan is that it is secured by real estate.
What percentage of the mortgage can I borrow?
Banks generally grant up to 80%, but this can depend on different factors, including the purchase value of the property. For certain profiles and operations, financing rates of 90% or even 100% can be obtained.
Brokers or intermediaries can obtain higher financing percentages, or better conditions than a private individual, as they have a higher volume of operations and agreements with the banks.
What are mortgage linkages?
Some banks can offer the mortgage loan together with other products. There are many different types of linkages, but the most common ones are direct deposit of the salary, home insurance and life insurance.
What documents do I need in order to apply for a mortgage?
There’s a short answer, and a long answer...
Let's start with the short answer:
-> Just your ID card. But of course, that's only when you apply through Colibid. Otherwise let's move on to the long answer.
- ID card
- Updated simple note of registration of property
-Income tax return for the last 2 years.
-Proof of income (pay slips, quarterly receipts or pension)
-Bank receipts for the last 6 months
What’s the expiry date of a mortgage?
It’s the maximum term set for repaying the amount requested in your mortgage. The amount of the instalments is calculated on the basis of the interest and the time taken to repay the loan. Although you can always cancel the mortgage by paying off your debt before the expiry date.
Why do banks charge interest rates, and what exactly are they?
Ohhh my friend...because nothing comes for free. Banks lend you money in order to make a profit. If the bank did not charge you anything for that loan, it would lose money, as the value of the money decreases over time.
The interest rate is calculated as a percentage of the principal, and can be fixed, variable or mixed.
What differences are there between the NIR and the APR interests?
NIR: the fixed percentage you pay for the money you borrow, which doesn’t include any fees or handling charges associated with the loan.
APR: an indicator used to compare the effective cost of two or more loans. It includes the fees and expenses of the operation.
How much does it cost to use Colibid?
Nothing! Our service is completely free of charge and with no strings attached.
Our fees are paid for by the banks. Some brokers may also ask for a commission for their services, but not all of them do and will definitely not charge anything if their offer is not the best. You’ll always have the last word!
How many offers will I receive?
Most of our clients usually receive more than 4 different mortgage offers, but it really depends on how attractive your profile is to the banks. There are clients who receive more than 15 different offers, and other people who, unfortunately, don't receive any bids at all...
We don’t interfere in the natural course of the auction.
What type of mortgage can I ask for?
You can apply for a new mortgage or improve the conditions of the one you already have (either by subrogating your loan or by taking out a new mortgage and paying off the old one).
Unfortunately, our service does not offer self-promoting loans, but sign up for our newsletter! We are working on it and will let you know as soon as they are available.
Is Colibid the one who grants the mortgage loan?
No. Colibid is neither a credit institution nor a bank. The loan will be granted by the lending institution bidding through our platform.
If I accept an offer, will I be legally bound?
Not at all! When using Colibid, you’re fully in control of the operation. When you accept a bid, the winner of the auction will contact you. But you can quit the process at any stage, at no cost.
I am not Spanish. Can I still use Colibid?
Yes, as long as you’re a resident of Spain.
Can I use Colibid to obtain a secured mortgage?
Not at the moment, but we’re working to include this function very soon.
How is Colibid different to a mortgage comparison site?
The bids you receive at the Colibid auction are real mortgage offers from certified banks and brokers. Therefore, all bids are 100% real and fully customised for you. In contrast, mortgage comparison sites only offer approximate results of the conditions that your mortgage could have, based on generic offers put forward by banks.
Can I use Colibid to get a mortgage as a freelancer?
Of course! Just let us know, by indicating that you are self-employed on the mortgage application form, and we’ll do the rest.
What happens if I don't receive an offer that I like?
It's OK. If the offers you receive don't meet your expectations, you don't have to commit to any of them. We guarantee the best mortgages on the market, but... when the best is not good enough for you... you can quit the process whenever you want (at no cost, of course).
Can I use Colibid to request a personal loan?
At the moment, Colibid can only grant mortgages. However, we are working on expanding our services and will soon include the possibility of applying for a personal loan alongside your mortgage. Feel free to subscribe to our newsletter and to follow us on social media so that you don't miss the launch of any new features.
Can I get a mortgage for a house outside of Spain?
At this stage, Colibid can only be used to purchase houses based in Spain.
Can I use Colibid to obtain a mortgage as a business?
For the time being, we’re not able to grant mortgages to legal entities.
About the app
How can I modify a document?
If you uploaded a document incorrectly and you’d like to modify it, don't worry, you can access the Document Management section directly, within My Profile,
or from the app’s home screen.
It's very simple, but here are the steps in case you need them:
1. You must choose the active mortgage application
2. Choose the type of file to modify (DNI/NIE, payslip, employment history, etc).
3. Upload the new file
How can I change my mortgage details?
At the moment it is not possible to edit them directly from the app but we’re working to include that feature as soon as possible. In the meantime, you can contact [email protected] and one of our agents will be able to make the changes for you.
What does the beta label mean in the app?
It means that the app is constantly being updated and we’re continuously implementing the recommendations we receive from all our users. But, don't worry, the auction, your bids and all features are 100% real and are securely stored and registered.
Do you accept suggestions for improvement?
Of course! Our primary aim is ensuring that our customers receive the best possible service. That's why we do our best to create a customer-oriented system. If you have any suggestions, we would be very grateful if you could send them to us at [email protected]
Your opinion is very important to us.
About the documents required
What happens if the information on my form and on my documents doesn’t match?
All the information you introduce in the form will be corroborated against official documents before the mortgage is signed at the notary. Therefore, if the information provided is not accurate, banks or brokers may withdraw their offer or modify the conditions to better suit your profile.
What will happen to my data when the auction finishes?
We’ll only keep your documents strictly for the necessary timeframe to allow us to perform the match. Once this is done, we will completely and securely delete all your documents.
You can read more about our data policy here
You can read more about our data policy
If you haven’t submitted any documents in Spain in recent years, we will not be able to download the latest data to corroborate the information on the form and finalise the process. Instead, you’ll need to upload the required documentation separately as part of the mortgage completion process to check your information.
About data protection
Is my personal data safe?
Data protection is paramount to us. Your ID card photo and the documents we download on your behalf are treated securely. All data is fully encrypted and your documents are completely deleted after 1 week.
Your data will always be presented anonymously to entities, in order to protect your privacy. Neither the banks nor the brokers need to know your name or your contact information to be able to make an offer.
Once you accept the offer and the general conditions, we will reveal your name only to the winner of the auction, so that you can proceed to the formalisation of the mortgage.
We will never share your information with any other company.
What do you do with my personal data?
Nothing. We only ask for the minimum, essential data that will allow banks can give you real and personalised mortgage offers. Your contact details will remain anonymous throughout the process, and will only be shared with the financial institution you have chosen as the winning bidder. When the auction is over, all your data will be destroyed.