Frequently asked questions about mortgages in Spain:

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How much will a Spanish mortgage company lend me?

Lending in Spain is based on the valuation of the property, your residency status, the purpose of buying as well as your income. For urban properties 70% - 80% can be achieved although for ‘rustic' property only 50% is available. Depending on the valuation of the property, it is possible to get up to 120% mortgage.

What types of mortgages in Spain are there?

Almost all mortgages are capital repayment and some include an interest only term. Fixed rates do exist but the interest rates are expensive. However, the Spanish mortgage market is constantly improving and the range of mortgage options has grown over the last couple of years.

What is the interest rate for mortgages in Spain?

The interest rate in Spain is called the EURIBOR. This is the European Central Bank base rate and changes every month. 4% is a good indicator of the mortgage rate available to non-residents although some mortgage providers can offer a better rate than this. Compared with an average of 6% interest rate on mortgages in the UK, Spanish mortgages are much more affordable.

How do I repay the Spanish mortgage?

If you are living in Spain and earning euros, you can pay your mortgage by monthly direct debit from your bank account. If you are living or working in the UK and wish to pay your mortgage in sterling, a commercial exchange company can arrange a fixed rate for monthly repayments so the sterling you pay for your mortgage remains the same regardless of exchange rate fluctuation.

What documents do I need to secure a Spanish mortgage?

Employed
1. Passport
2. P60
3. Last 3 months payslips
4. Last 3 months bank statements
5. Bank reference *
6. Employers reference *
7. Credit report *

Self Employed
1. Passport
2. Tax Return
3. Profit & Loss accounts for return
4. Balance sheet to date
5. Last 3 months personal & business bank statements
6. Bank reference *
7. Accountants reference *
8. Credit report *
* required for 80% borrowing

How long does it take to arrange a spanish mortgage?

It can take anything from 2 to 6 weeks to arrange a mortgage, so 4 weeks is a good indicator. Remember to allow for this extra time after you have decided on a property and paid the reservation deposit. A month on average is needed to receive your income documents and to instruct and obtain the valuation.

How much is a Spanish mortgage going to cost me?

In general terms if you are purchasing without a mortgage you will need to pay 10% of the purchase price in taxed charges and fees. If you are buying with a mortgage you will need to pay up to 12%. The fees are listed below:

Purchase Costs

7% IVA (VAT)
1% Stamp duty
1% Legal fees (there may be a minimum to pay)
Notary fees

Mortgage Costs

1% - 1.5% Set-up fee
1% Stamp duty (1% of mortgage value + 1% of total accrued interest)
Valuation fee
Notary fee
Arrangement fee (depending on the Mortgage Provider)

Do I need a Spanish lawyer?

Getting an English speaking Spanish lawyer is of paramount importance. The lawyer will check to make sure the property is legal and that the debts registered to the property, if any, are cleared before the sale proceeds. They also controls the flow of money through client accounts, organise the connection of services, and if they have Power of Attorney, can sign at the notary to complete on your behalf.

More information about mortgages in Spain:

Start arranging your Spanish mortgage early on

Overview of the Spanish mortgage market

Spanish mortgage costs explained

Is a Spanish mortgage a good idea?

Spanish mortgages vs UK Mortgages