Simply Spanish Mortgages - Mortgages in Spain


Spanish Mortgages FAQ's

One of the biggest headaches for potential overseas buyers in Spain is how to finance the purchase. There are several laws and conventions in Spain, as well as different "jargon" even, which can make a Spanish property purchase a little daunting. At Simply Spanish Mortgages, we want to assure you that this process can be simplified as much as possible by our team of experienced advisors who have extensive knowledge of both the domestic and Spanish mortgage systems. Often, a Spanish property can be financed by releasing equity from your UK property and that is where our combination of experience of both markets come into their own.

We have put together a list of Frequently Asked Questions for you to look at to try and make financing your purchase as easy as possible. You can even ask your own question at the bottom and it will be added to the list.

  • I am English citizen - can I get a mortgage in Spain?
    • Yes, there is no problem for you to get a mortgage as long as you can prove your income. (Ex. P60, Self-employed, pension or other tax declaration from other country)

  • How much can I borrow?
    • The maximum amount that will be advanced is 75 % for a non-resident and 80 % for a resident of the value of the property, or the purchase price whichever is lower.

  • Can I get a mortgage on any type of property?
    • Loans are now available to purchase of any type of residential property, whether a small apartment, townhouse, large villa, traditional finca or new development.

  • Where exactly can I purchase property and still obtain mortgage finance?
    • Mainland Spain - Balearic Islands - Canarian Islands

  • How long does all this take?
    • Once you have decided that you want to go ahead, arranging a mortgage secured on a Spanish property it will usually take 3-4 weeks.

  • Do I need insurance on my property?
    • Yes, it will be a condition of your mortgage that fire cover to protect your property is taken through an approved insurance company.

  • Are there any redemption penalties?
    • Redemption penalties (known in Spain as early repayment commissions) are applied by almost all banks. These vary between 0,5 - 1,5%.

  • How long repayment period can I get?
    • You can have your mortgage from 10-30 years.

  • How much does it cost to value my property?
    • The Bank will appoint a valuer from the Bank's panel of valuers to carry out a survey for mortgage purposes, the cost of which is to be met by you before the valuation is undertaken.

    Your questions answered........

  • You say that as long as you can prove your income you can obtain a morgage in Spain, is this also subject to status?
    • Yes the mortgage is subject to status in that they will want a bank reference to confirm the income and to see payslips or accounts but there are generally no credit checks or credit score systems in place unlike the uk.

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