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Can I obtain a mortgage without any documentation?

Financial Law

Antonio Flores Vila

12th of March 2000

Q. I wish to purchase a property in Spain, I understand you need to submit P60 or accounts, tax returns etc. Can I obtain a loan if I canĀ“t submit these items, such as a non-status mortgage. I have a 30% deposit.


    A. In Spain banks will not lend money unless the borrower can prove income of at least three times the expected monthly return. Non-status mortgages are difficult to obtain and the in the case of purchasing a secondary residence the banks will simply not even consider an application.

    I've heard of buyers who receive income which they cannot prove, and as the banks will not grant a mortgage on that basis, they have obtained false P60s and wage slips from inexistent employers on which loans were then granted. Banks do not normally check the veracity of the documentation submitted. If they did, they would probably lose business to other lenders willing to assume the risk of approving a mortgage on the basis of photocopied documentation.

    These practices are nonetheless illegal and could give rise to problems.

    Let me know a bit more of the kind of property you wish to buy, price etc. Perhaps we can start working on it.

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