Mortgages for Spanish Homes

Even if you have enough capital to purchase a new property in Spain outright, you may want to consider the option of a mortgage.

The mortgage range is the same as in the UK, but the interest rates in Spain are amongst the lowest in Europe.

Most banks supply all mortgage documentation in English and offer a tailor-made service for overseas borrowers.

Most mortgage companies and banks lend up to 60% of the property value for non-residents and up to 80% for residents, with a choice of repayment periods from 5-20 years.

You’ll recognize the types of mortgage on offer, variable interest, fixed interest or a mixture of both.

Many new Spanish properties have a competitive ‘ready made’ mortgage service as part of their offer, which simplifies the service even more.

Documents required for obatining mortgages in Spain:

If employed:

• Bank reference or details of your bank for reference purposes.
• Last tax return
• Last three payslips.
• Last three bank statements.
• Letter from employer stating length of employment and salary.

If self employed:

• Last 3 accounts from your chartered accountant
• Copy of your last tax return.
• Bank reference
• Last 3 bank statements.

Be aware that if you are going to be repaying your mortgage from your UK income, you may lose a substantial amount of money due to exchange rate fluctuations.

In any circumstances, you must take qualified mortgage advice before you sign anything.