Skip to contents

How does a mortgage risk profile influence the granting of a mortgage?

What is a mortgage risk profile?

When you apply for a mortgage it is hard to know whether it will be granted initially. Although some lenders impose more stringent requirements than others, the likelihood of being granted a mortgage will largely depend on your mortgage risk profile. This short article will help you get an initial idea of your chances of success.

As noted above, your mortgage risk profile will be the most important factor that determines whether the bank grants you the mortgage or not. This profile has acquired greater significance with the new Mortgage Law, transposed from European Directive 2014/17/EU and which obliges credit institutions to perform a more thorough assessment of borrowers.

You can find out whether you will be granted a mortgage by assessing your economic solvency (or credit score), based on your financial situation and trying to work out whether you can afford to make the monthly payments for the duration of the loan. The bank's decision will be based on criteria such as your level of income, expenses and other loans that you already have at the time of applying.

The bank will need to know some information to calculate your mortgage risk profile, such as:

  • Your employment situation and income. The monthly mortgage repayment should not be more than 30% of our net income. Banks may also ask for your latest income tax return (IRPF) and employment history, as well as other loan payments, payslips, proof of additional income, and other documents.
  • The assets you own, or capital solvency. In other words, your movable and immovable property (properties, premises, garages, etc.). The entity can find this information in the Property Registry.
  • Any debts and non-performing loans, which they can find out from the CIRBE (Bank of Spain's Risk Information Centre), a database containing the profile and records of applicants.
  • Your family and personal situation, and your age. According to banks, mortgage holders should not be over 75 years of age at the end of the loan.
  • Other documents, for example, if you are self-employed or work for someone else.

Regardless of these factors, there are a few ways you can increase your creditworthiness. For example, including two mortgage holders will increase your chances of success, since this will double the guarantee. You can also provide guarantors, or non-obligor mortgagors: individuals who will guarantee your mortgage by pledging their assets as collateral. These guarantors must have stable income and/or properties free of encumbrances.

A pre-appraisal of the property will also help to get an idea of your options, which is why it is a highly recommended option; remember, banks usually grant 80% of the appraisal value, so you will need to see whether you can meet the remaining 20%. If not, the loan is not likely to be granted, and knowing this beforehand may save you a lot of paperwork.

If the bank does not approve your loan application, you will have to explain the reasons to us in detail and in writing. If the bank makes an incorrect assessment, the loan cannot be rescinded.


Variable-rate mortgage

The classic mortgage but with Bankinter terms and conditions.
find out more about variable-rate mortgage

Fixed-rate mortgage

The mortgage with no surprises: fixed instalments for the entire term of your loan.
find out more about fixed-rate mortgage