Autopromotor mortgage to finance your new passive house

In Spain, the dream of building your own custom-built passive house becomes a reality with an "autopromotor" mortgage.

This type of loan is designed to finance the construction from scratch of a home for own use, and therefore has some features that are slightly different from ordinary mortgages, which are designed for the purchase of already built homes.

Read on and find out everything you need to know about "autopromotor" mortgages to finance the construction of your next passive house. And if you have any questions, we'll be happy to talk to you.

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How do autopromotor mortgages work?

 The way in which a self-promoter mortgage is executed may vary somewhat from one bank to another, but in general they work as follows:

• Financing is usually 80% of the construction budget, and 60% if it is a second home.
• The duration ranges from 10 to 30 years.
• Partial disbursements are made as construction progresses: 1) In the initial phase of the project, a significant amount is received to finance the architectural project and the start of the works, 2) In the certification phase, the bank will make small disbursements on presentation of proof of the progress of the works, and 3) In the final phase, when the construction of the house is completed and the certificate of occupancy is obtained, the remainder of the loan is received.
• There is an initial grace period, which is normally the length of the construction period, during which only interest is paid.

 Something important to bear in mind is that this type of mortgage does not include the purchase of the land, as they are designed to finance only the execution of the work. Therefore, to be able to access a self-build mortgage it is necessary that you already own a plot of land. If you also need to finance the land, a good option is to do so with a personal loan.

What are the requirements for financing the construction of your home with an autopromotor mortgage?

 To apply for a self-build mortgage you will need to submit a number of documents to the bank:

• Certify that you are the owner of the land on which the house is to be built, and that this land is classified as land for development. This must be recorded in the Land Registry.
• To have the building permit issued by the town hall of the locality where the work is to be built.
• To have a construction project drawn up by an architect and validated by the College of Architects.
• Submit a construction estimate from a construction company.
• To have the energy efficiency certificate, which is carried out during the drafting phase of the project.

Do autopromotor mortgages apply to manufactured housing?

 Yes, self-build mortgages also apply to the construction of prefabricated houses, as is the case with our timber frame houses. The only prerequisite is that the house is anchored to the ground, i.e. that it has a foundation, and therefore is not a mobile home.

Autopromotor mortgages for sustainable housing

 There are banks such as Triodos Bank, which promote the construction of sustainable housing such as passive houses or Passivhaus.

They value the fact that you buy a home that reduces carbon dioxide emissions and promotes energy saving, in order to limit the environmental impact and combat climate change. To this end, they offer better conditions depending on the energy rating of the home to be financed.

Sara, our contact person at Triodos Bank, will be able to give you more information.

 So are you ready to take the next step towards your new passive house made of wood? Schedule a video call with us and let's start shaping your project.