How do Spanish banks assess how much they will lend?
A. Different banks use different processes and all assess on a case by case basis. However, the typical rule is that the monthly mortgage payment cannot exceed 30-35% of your monthly disposable income. Disposable income is defined as income after tax and after any outgoings on mortgages, loans or credit cards that are not paid off monthly. Incomes are combined for joint applicants and, if needed, some banks will accept a third applicant/guarantor which can help boost income.
