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Mortgages In Spain

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 8, 2023

Mortgages In Spain

Whether you’re looking for a second house, a source of rental income, or an exotic holiday home, you may be considering the Spanish property market as an option, and if that’s the case, there’s a lot you need to know before making your Spanish property purchase dream a reality.

Here’s Loan Corp’s comprehensive guide to getting a Spanish mortgage.

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Why People Get Mortgages In Spain

Over the past few years, the economic conditions in Spain have seen marked improvements, and as a result, house prices have increased. This might not be what most prospective homeowners want to hear, and it also means more competition between Spanish lenders.

The competition between lenders in the Spanish mortgage market has led to them offering significantly improved interest rates for non-resident mortgages. This, in turn, has made borrowing much more viable and attractive to foreign buyers.

In addition, political unrest in previously popular destinations such as Greece and Turkey has made Spain a safer option.

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How To Get A Mortgage In Spain

You’ll be pleased to know that Brexit hasn’t made it too difficult for UK citizens and expats to get a Spanish mortgage: you still have the right to buy property in Spain and to get a mortgage.

To begin with, getting a mortgage in Spain requires a foreigner’s tax number and a Spanish bank account. It’s also vital to remember finer details, such as notary fees and Spanish income tax.

As far as actually getting a mortgage for a Spanish property is concerned, would-be buyers have three main options:

International lender

Under the right circumstances, an international lender may help you secure a lower interest rate for your mortgage. This can be particularly useful in the long run, as lower interest rates offset higher upfront costs.

On the other hand, Spanish lenders don’t have access to UK credit files, so their risk profile assessments may take significantly longer than if you were buying property in the UK.

A Spanish mortgage may also require a larger, non-refundable deposit, so it’s wise to assess a contract thoroughly before agreeing to any mortgage terms.

Non-Spanish lender

Unfortunately, there are presently no UK lenders that offer Spanish mortgages. However, foreign banks in Switzerland, Monaco, and Luxembourg may aid Spanish property purchases. However, they provide a minimum loan of €1 million and a purchase price of €2 million.

The best way to get around this is through a consultation with Loan Corp. Our agents will leverage their knowledge of the Spanish market to provide bespoke solutions to your problem.


Remortgaging means taking out a new mortgage on a property you own, usually to replace an existing mortgage or to take out a loan against your property.

If you already have a property in Spain, then it may only be possible to remortgage it for home improvements or to purchase another property in the country.

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How Much Can You Borrow?

How much you can borrow depends on your financial situation and choice of lender. On average, the loan-to-value ratio is around 60 to 70 percent, but this could be higher if you live and work in Spain.

Mortgage lenders operate according to various methods and rules. For example, one lender may favour applicants with credit scores above a certain amount, while others don’t focus on that factor.


How Long Does It Take To Get A Mortgage In Spain?

In general, it’ll probably take no longer than two weeks to get your mortgage approved; this is assuming that the process goes smoothly and you already have all the necessary documents in order.

To accelerate the process, do your best to ensure you’re readily available to communicate with the lender, have all the required documents ready beforehand, and use online tools such as a Spanish mortgage calculator.


The Criteria Spanish Lenders Look At For Non-Residents

You’ll find that the criteria to be eligible for a mortgage in Spain don’t differ much from that of UK lenders. As you may already know, whether or not you can actually afford the loan is the central focus of any mortgage application.

As a non-resident, your ability to afford a mortgage will be judged on the following criteria:

  • Income
  • Credit rating
  • Age
  • Nature of employment
  • The type of property

Please note that these are just general criteria that most Spanish mortgage providers will look at, and they can still vary according to how a provider runs its operations.

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Does Credit History Matter?

It’s extremely rare, if not borderline impossible, for a lender not to look at your credit history, as this is a critical aspect of the mortgage lending process. Lenders use your credit history to gauge if you mismanage your finances and to determine how likely you are to default on your mortgage.

Getting a mortgage in Spain may be tricky if you’ve had any credit problems within the last six years and you aren’t a Spanish resident. Lenders want to be as confident as possible that a person will uphold their end of the agreement.

You need to bear in mind that different lenders have different definitions of good and bad credit, so just because one gives you a mortgage approval doesn’t mean all the others will do the same. Being rejected also doesn’t mean that all hope is lost.


Get In Touch With Loan Corp Today

Getting a mortgage can be quite a lengthy process. With the number of options available on the market and all the brokers pulling you in different directions, finding a mortgage at a favourable rate can be a bit of a headache.

Luckily, Loan Corp has a robust process that makes the most of technology to streamline the mortgage process. In addition, we have a dedicated team of experts with a wealth of industry knowledge to guide you at every step of the way.

Apart from the wide range of mortgages we offer, we also have a multitude of financial products for your benefit. Speak to a Loan Corp today or use our Spanish mortgage calculator.

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What is the Spanish Mortgage association?

The Spanish Mortgage Association or Asociación Hipotecaria Española is an entity that provides statistical information on the mortgage market. It consists of Spanish banks, cooperatives, and credit institutions.

Can you get a 100 percent mortgage in Spain?

100 percent mortgages are indeed available in Spain. However, the chances of obtaining one are incredibly slim. Besides this, 100 percent mortgages are not given to foreign buyers.

In Spain, non-residents can get a maximum mortgage of 70 percent of the purchase price or valuation, depending on which is lower. In most cases, you’re more likely to get favourable terms if the mortgage is below 70%.

What do mortgage brokers do?

A mortgage broker is a finance professional that ensures a borrower gets a favourable loan and that the loan closes on time. They do this by collaborating with all the parties involved in the lending process, including real estate agents, underwriters, and closing agents.

More specifically, a mortgage broker will research loan options and negotiate with lenders on behalf of clients. They may also pull credit reports, verify income and expenses, and tailor loan aspects such as how you pay interest, loan to value, and what you pay.

How much deposit do I need for a mortgage in Spain?

For Spanish mortgages, you’ll typically have to make a deposit that is 30 percent of the property’s purchase price, bearing in mind that borrowing rates currently sit at around 2 percent.

Get in touch with a Loan Corp agent if you’re unsure about anything related to mortgages in Spain.

What is the difference between fixed-rate mortgages and variable-rate mortgages?

Fixed and variable-rate mortgages are the two primary types of mortgages. Despite this, both categories have a number of variations in the mortgage marketplace.

A fixed-rate mortgage has a set rate of interest that doesn’t change throughout the loan. Whereas the starting interest rate on a variable-rate mortgage is set below the market rate of a fixed-rate loan and either rises or lowers as time passes.

Choosing a loan type that suits your individual needs is an important step when shopping for a mortgage. If you’re unsure about anything mortgage-related, contact us or get in touch on 0808 301 9509.

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