Spanish-English Property dictionary

Aval - Loan Guarantee: This is a way of ensuring that a loan will be repaid. The loan guarantor has the responsibility of paying the bank if the person who has taken out the loan is unable to meet payments to the bank.

Aval bancario is a bank Guarantee: This is when a bank acts as a guarantor should its client be unable to repay a loan.

Avalista is the Spanish word for Loan Guarantor - This is the person who gives a guarantee to the bank that a loan will be repaid in the event that the person who has taken out the loan cannot meet repayments. There are a number of risks to be considered before agreeing to act as a guarantor.

It is quite common for Spanish banks to ask for guarantors when agreeing to mortgages. It may be particularly useful for first-time buyers to have a guarantor when applying for a mortgage. Other occasions when a bank might require a guarantor before agreeing a mortgage is when the person applying for the loan has a low income in relation to the amount they want to borrow.

In renting/letting contracts in Spain the tenant can also be asked to provide a guarantor by the landlord/letting agent before any contracts can be signed.