Spanish Mortgages

Spanish Mortgages are easy to obtain and there is a wide variety of banks to choose from and they are all competitive. Therefore there is no need to use a mortgage broker in Spain as they charge expensive fees for doing something that is simple. We are happy to point you in the right direction and accompany our clients for free.

The usual ways of financing Spanish property purchases are through UK house sale, equity release from a UK property (remortgage)or through a Spanish mortgage. The Spanish mortgage market is less developed than the UK market, although new products are becoming increasingly available, such as interest only mortages and special young peoples´ mortgages.

In general a mortgage will be based upon:

1. The Property value (the bank will provide an independent valuation company, a "tasador" who will visit and value the property at a cost of around 300 euros)

2. The Bank will ask for proof of income or joint incomes as confirmed by P60 & 3 current pay slips , pension or other tax declaration from the UK and sometimes bank statements.


Non-Resident Mortages:

Non-residents can normally borrow up to 70% and sometimes 80% of the purchase price or valuation. Some banks will always use the valuation rather than the purchase price, which may allow a higher perentage to be obtained.

Standard mortgage length is 25 years, however 30 year mortgages can be obtained up to the age of 70 or 75.

The standard rate of interest is variable, fixed rates are normally higher

Currently a typical rate will be 1% above the base rate (Euribor) reviewed each year and fixed for the following year.

The vast majority of mortgages in Spain are repayment mortages. However, there are mortgages available which offer interest only payments for the first few years and one or two with up to 20 years interest only

Borrowers up to the age of 70 can be approved a loan with no problems.

Resident Mortgage:

Residents can borrow a higher percentage rate, normally 80% but it is possible to obtain a mortgage of up to 100%.

A 35 year term is possible, the normal resident term is 30 years

Interest only payments are available for the first few years of the loan with most banks and from up to 15 to 20 years with a couple of banks.

We believe your lawyer and bank should be independent of both the builder of your property and ourselves, in order that they act on your behalf. However, we do have an excellent network of English speaking solicitors and financial contacts we can recommend to you.