Other International Mortgages : Spanish mortgages

If you are looking for information on obtaining a Spanish Mortgage we have all of the information you need right here! For information about the latest Spanish mortgage rates, contact a Spanish Mortgage Consultant, or to work out what you monthly Spanish mortgage repayments may be with our International mortgage calculator.

If you’ve already started your search for a Spanish property the following guide to purchasing a Spanish property will provide you with an outline of what you can expect from the process. Once you’ve found your dream second home and had your offer accepted you’ll need to think about transferring your deposit to the Notaire. We’ve got information on how you can save money on making payments to Spain and obtaining English worded buildings and contents insurance to ensure your new home is properly covered!

Eligibility & criteria

The Spanish mortgages we source are in Euros and Sterling and are secured against Spanish residential property. At present, all mortgages are full status and proof of income and outgoings will be required. 

The maximum loan to value available is up to 70% of the purchase price, though some lenders will go to 80% if you purchase your main residence. 

Spanish mortgage lenders assess eligibility on the applicant’s capacity to repay the Spanish mortgage.  As a guideline, your existing monthly outgoings as well as the monthly repayment on your new Spanish mortgage should not exceed 35% of your net monthly income.  A percentage of any rental and investment income you receive can also be considered.  Mortgage, rent, personal loans and maintenance commitments are all considered as outgoings. To find out how much you can borrow, complete our quotation request form.

Spanish Mortgage lenders will consider applications in the name of an English or Spanish Company.  This is not widely available and will be at the lender’s discretion. Lenders prefer to lend on properties located in desirable locations ideally on the coast or in large urban areas.

Types of Spanish mortgage

Spanish Mortgages can be obtained for the purchase of off-plan, new or existing properties.

Remortgaging is available but lenders have little appetite for this and it can be extremely costly.  We recommend that you check with your existing lender if any penalty will be payable for cancelling your current Spanish Mortgage. 

Spanish Mortgage products

A variety of Spanish Mortgage products are available. Mainly on repayment basis Spanish Mortgages can be arranged, on a variable or fixed-rate basis. Terms can be from 5 to 30 years however loans must generally be repaid by the age of 70.  Many products tend to feature early redemption penalties, specifically in the first year of the mortgage. For an idea of the rates available contact a Spanish Mortgage Consultant, or for a personalised quotation complete our quotation request form.

Documentation required by the Spanish Mortgage lender

Lenders are required to have sufficient documentation proving that the borrower can afford the Spanish Mortgage repayments and you will therefore be required to submit a number of supporting documents.  Please note most Spanish Mortgage lenders will also carry out a credit check to confirm your outgoings here in the UK, and in many cases this will reduce the number of documents required.  Please see below for a summary of what is normally required. Please advise your Consultant if you would like to receive quotes only from lenders that request minimal documentation.  A detailed list will be compiled based on any preferences you have shown and sent to you with your personalised quotation.

You will need:  

  • Proof of identity & residence
  • Proof of income & outgoings, proof of personal contribution
  • Bank statements for the past 3 to 6 months
  • Property details

You will have to obtain a NIE number (fiscal number) in Spain, we can assist with this requirement.

Spanish Mortgage Timeframe

An Agreement in Principle can be obtained from a lender once all of the necessary documentation has been submitted.  This takes approximately five working days.  However, for Spanish Mortgages in excess of €750,000 this may take longer.

We would recommend that you allow a minimum of eight weeks from application to the lender to completion.

Life assurance

Life assurance is not mandatory for a Spanish Mortgage.  However it is highly recommended and rates are more attractive if you take it with the lenders favoured partner if you would like to receive a quotation for life cover please ask your Consultant to recommend a provider.

Buildings insurance

Buildings insurance must be in place for completion.  Most Spanish Mortgage lenders offer buildings insurance. If their provider is not used, they will require proof prior to completion that the policy has been assigned to them.  Please ask your Consultant if you would like to be referred to a specialist overseas insurance provider.

Bank account

You will need to open a Spanish bank account before completion, from which your Spanish mortgage repayments will be debited.   Most lenders insist you open an account with them. If this is not the case then we will advise you so that you can open an account.

Payment of your Spanish mortgage

Please be aware that missing a Spanish mortgage payment may have serious consequences and we therefore strongly advise you arrange for monthly debits from a UK account.  A number of foreign exchange providers offer a renewable 12 month regular payment plan. The exchange rate is fixed at the start of the plan, and the agreed amount will be debited from your UK account and sent to your Spanish account each month.  This service gives you peace of mind in the knowledge that your Spanish mortgage repayments will be met automatically each month. Please ask one of our Consultants to recommend a provider if this is of interest.

Transferring funds to Spain

Whilst purchasing your Spanish property it is also likely that you will need to transfer funds to Spain, to pay a reservation fee, a deposit on the property, or to cover additional purchase costs.

Making payments in a foreign currency will mean you are exposed to movements in exchange rates.  This is likely to affect the final cost of the property you are buying, as will the exchange rate you receive when you make the transfer.

Through our carefully selected foreign exchange provider we are able to not only save money on the exchange rate you receive but reduce your exposure to exchange rate movement.

For further information on how these services can benefit you please talk to your consultant who will be able to answer any questions you may have.


A representative from the bank will be present to issue the cheques, or following completion a transfer will be made. You do not have to be present at completion and can give Power of Attorney if necessary, your lawyer will be able to discuss this with you in more detail.

Costs of setting up a Spanish mortgage
Bank’s arrangement fee – typically 1% of the loan amount.

Valuations – these are required by all lenders.  The cost varies from lender to lender and is dependent upon the size of the property. Please refer to your personalised quotation for an estimate.

Estate Agent’s fees – in some cases these can be included in the loan amount.

Notary Fees – these are fixed by law and are based on a sliding scale.  If you take out a Spanish mortgage, a further cost will be passed on to you by your Notario for registering the lender’s charge with the land registry.

We charge a non-refundable commitment fee of £500 which is payable when you wish to start the application process.

A further fee may be payable on completion of the mortgage.  Please refer to your personalised quotation for confirmation.

We recommend that you seek professional legal & tax advice before purchasing in Spain.


Found a property? Request a quote now or call +44 (0)207 484 4600