Spanish Mortgage Jargon and terms used


Binding offer

Early repayment fee

Loan to Value (LTV)

Debt To Income (DTI)


TAE (Tasa Anual Equivalente)
In Spanish “Hipoteca

In Spanish “Oferta Vinculante

In Spanish this is called “Comision de amortización anticipada

The relation between the loan and the value of the property. The bank will loan you up to a certain percentage of the value of the property you’re purchasing. The exact figure will depend on the specific circumstances of the individual.

The relation between your income and your loans. The banks will only accept that you use up to a certain percentage of your gross income to pay off loans.

Change your mortgage to another bank. Note that this will imply the payment of certain fees.

To know the actual cost of the mortgage, TAE is the number we need to study. The TAE is the result of a mathematical formula which includes the interest rate, the charges and the term of the operation.