The most common type of mortgage in Spain is the capital and interest or repayment mortgage. However, in a competitive market, mortgages with an initial exclusion period are becoming increasingly popular.

In capital and interest mortgages, the loan is returned by paying part of the capital monthly, together with the interests generated. This way, the loan is returned completely once the when the repayment period has ended.

On the other hand, mortgages with an initial exclusion period consist in initially paying only the interests, and returning the capital at the end of the repayment period.

During the initial period, clients only pay the interests on the loan, and none of the capital .

You will need certain documents in order to apply for a loan, which vary depending on whether the applicant is employed, self-employed or retired:

Employed:

	Last three pay slips.
	Tax return from last two tax years.
	Company certificate confirming salary and length of time at company.
	Bank statements for last three months.
	Reference letter from bank.

Self-employed:

	Tax returns for last two tax years.
	Report by accountant.
	Bank statements for last three months.
	Reference letter from bank.

Retired:

	Last three pension slips.
	Tax return from last two tax years.
	Bank statements for the last three months.
	Reference letter from bank.