Spanish Mortgages in Spain

Borrowing money in Spain is relatively easy and the interest rates are historically low compared to the UK interest rates.

Simple Application Process

Spanish banks have a very simple application process that does not usually require you to disclose any information about your affairs back home in the UK. Usually all that is required is a meeting with the bank manager to discuss your requirements and a deal is often negotiated there and then. They will want to see a copy of your passport and some proof of income. It will also be necessary for the bank to do a valuation on the property and that is it - no questions, no application forms, no hassle!!!

The process is not only far easier than the UK but it is also quicker - most loans can be organised in less than 3 weeks.

Interest Only schemes

Most mortgages will be the Capital and interest repayment type (often referred to as a "Repayment mortgage") but you can often get say the first one or two years on an interest only basis if you need some breathing space in the first year or two. The mortgage market is rapidly developing and it is now possible to get interest only for the entire period of the loan if your main objective is to keep repayments as low as possible. There are also a few "self cert" schemes around now which are ideal if you have difficulty proving income.

As a rule of thumb banks will lend up to 70% of the value for non residents and a few will go up to 80% of the value of the property. For self Cert mortgages the maximum the bank will lend is 60% ltv.

Set up costs

The only drawback with borrowing from Spanish banks is that the set-up cost is quite high compared to the UK. Typically you need to allow around 3.25% of the amount you borrow to cover the set up costs. However, it won't take long to recover this cost when you consider that interest rates on the continent are consistently lower so after the first year or two you are very likely to be far better off.

For specific mortgage advice please call us to speak to our Qualified Mortgage Adviser or send your enquiry using the form below;

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