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Spanish mortgages
How much can I borrow in Spain?
Spanish mortgages are available (subject to status) for non-residents up to 80% of valuation of the property, though most lenders prefer to work on the basis of 70% loan to valuation.
What mortgage interest rates are available?
Spanish mortgage rates vary depending on the type of product and are based upon the EURIBOR rate - check with our mortgage experts for the exact figure, as this changes regularly.
What type of mortgage products are available in Spain?
The mortgage market in Spain isn't as sophisticated as in other countries. The vast majority of Spanish mortgages are simple capital and interest repayment mortgages. However, over the last few years a greater range of products have come onto the market, including interest-only mortgages, fixed rate mortgages and even self-cert mortgages.
Can I re-mortgage at home to buy a property in Spain?
Yes, you can, as long as there is sufficient equity in your property at home. This is a very popular way of financing a property in Spain. A property is re-financed at home to cover 30% of the costs, and then a 70% mortgage is taken in Spain to cover the balance.
Is it possible to obtain 100% finance on my Spanish property?
You will not obtain a 100% loan to valuation through a bank in Spain. However, there are a couple of ways to finance 100% of your property price. The first way is, as above, to re-mortgage one property for a proportion of the price and obtain a Spanish mortgage for the remainder. The second way is to purchase an off-plan property in a rising market and to obtain a mortgage on completion, based upon a 70% loan to valuation at the higher completion price But beware that the Spanish central bank is tightening up on this and is now advising lenders that they should base their lending upon the actual purchase price rather than the valuation price.
What paperwork do I need to produce to apply for a mortgage in Spain?
Generally, the banks in Spain will require 3 months wageslips, P60 and 3 months bank statements. If self-employed, you will need to produce a set of your last accounts. Mortgage providers in Spain have different attitudes to risk, so some may ask for credit checks, particularly if you are looking to borrow a significant percentage of the property price.
I have a developer's mortgage already in place. Is there any point in looking at alternatives?
Most developers arrange finance when they acquire a project. You will still need to prove your income at the time of completion. Sometimes, these developers mortgages may contain adverse terms or conditions, so our advice is to shop around so that you have a few alternatives to consider.
What do the banks charge for arrangement fees?
All banks have arrangement fees, and these vary from lender to lender, and can be negotiable on occasion.
What do the banks charge for valuation fees?
The valuation fee varies from lender to lender, but 0.1% of the valuation is the average.
