Can I have an interest only Mortgage?

Yes.  Currently, you can have interest only for the first 5 years of the mortgage.

Can I have a Spanish Tracker Mortgage?

Yes.  Spanish Mortgages are typically always variable tracker mortgages and usually follow the 12 month Euribor base rate.

Can I have a fixed rate Spanish Mortgage?

Yes.  There are many fixed rate Spanish mortgages available.

Can I have a self-build mortgage?

Yes.  You must own the land outright (with no mortgage or secured loans) and the Bank will finance up to 60% of the final build value

I do not have proof of income, can I get a self-certifed Spanish Mortgage?

No. Self-certified Spanish mortgages are not available. Neither are non-status Spanish mortgages available.

What is the maximum term allowed for a Spanish Mortgage?

The maximum is currently a 40 year mortgage term and the mortgage must be finished by age 75 years old.  Typically, Spanish mortgages are limited to a 25 year term and mortgage finished by age 70 years old

Spanish Mortgages to age 75

Can I have a valuation of the property before I commit to buying it?

Yes.  We can quickly arrange a property valuation / survey from a bank.  The report is available within around 5 working days from when they visit the property.  The valuation is usually accepted by most other banks 

How much can I borrow?

5 times gross income is the maximum including existing mortgage commitments + potential new mortgage but the monthly payments must not exceed 50% of your NET monthly income.  Some Banks use a lower percentage, for example 30% of NET monthly income but do not have an income multiple limit.

Can I change my mortgage product or lender if in the future if my current mortgage is no longer suitable for me?

Yes. However, there usually are costs involved so you would need to seek independent mortgage advice to weigh up the potential benefits of the change.

As I will be using my Spanish property as a holiday home, how will this affect the insurance of my property?

It is essential that you advise your home insurer and your mortgage lender of the property useage and the number of days you expect the property to be un-occupied each year. Suitable cover can then be arranged.

Do Spanish Banks speak my own language?

Yes.  Most Spanish Banks have multi-lingual staff who speak English as well as most other European languages.

Apart from my mortgage payment, what other mandatory bills do I need to account for?

As a Spanish property owner, you will be billed annually by your town hall for local taxes and refuse collection called IBI and Basura. If your property is on a private shared community, you will be required to pay a contribution (normally by monthly bank direct debit) towards community taxes and maintenance of the complex. Also, don't forget your utility bills which are also normally collected by bank direct debit.

How can I monitor my Spanish bank account to ensure I have sufficient funds to pay my mortgage and essential bills?

Most Spanish banks provide 24 hour on line access with an English language option.

Why should I take a Spanish Mortgage when I can raise the money in my own country?

If you raise the funds in the UK they money is exposed to currency risk when transfered to Spain.  Exchange rate fluctuations occur daily so GBP sterling could buy much less in Euros than it did a few days, weeks or months ago.  Also, it is always preferable to avoid raising funds on your main residence to fund a holiday home so you better protected in the event you are unable to pay your mortgage. 

How long does the mortgage take to complete?

The Spanish Mortgage process usually takes around 3 to 4 weeks to complete from receipt of a full application.  This can be longer if there is a problem with the property (usually picked up in the valuation) or over the summer holiday period as Spanish Banks and the legal system are affected quite heavily by staff holidays.

Can I repay my Spanish mortgage early?

Yes.  You are able to repay the loan in whole or in part subject to a maximum charge of 0.5% of the balance outstanding or of the amount you are repaying.  By law, this must reduce to 0.25% after 5 years.

Can I use guarantors if I need to?

Yes.  Most banks are happy to consider the use of a guarantor or guarantors if the main applicant is short on income or if a longer term is required than that available due to the applicant’s age.  The guarantors will need to provide the same level of documentation for underwriting as the main applicant.  

Do I have to take a Euro Mortgage?

No.  Some banks have multi-currency mortgages available and, depending on the circumstances of the client, it may be better to take a mortgage in the same currency as income is earned to prevent currency fluctuation risk.

How do I open a Spanish bank account?

The Bank granting your Spanish mortgage will open a current account ·and offer you all the usual bank services including internet banking (available in most languages), debit card and cheque book.

How do I pay my Spanish Mortgage?

Spanish Mortgages must be paid from a current account with the bank granting the mortgage.  It is therefore your responsibility to ensure there are sufficient funds in the account each month to cover the mortgage payments.  Check out the best way to transfer money to Spain in our Foreign Currency page.

Will I need a credit report?

Yes. You will need to get this from a credit reference agency in your own Country.  Click here to find out how to apply for your credit reference report.

Do I need a Spanish Lawyer?

It is highly advisable that you use a Spanish Lawyer to act on your behalf, especially when buying a property as they can ensure your interests are full protected from a Legal point of view and can also provide a valuable service even after the transaction has concluded

Do I need to come to Spain for completion?

You do not need to be in the country for completion if you have are using a Lawyer and have granted them sufficient power of attorney to handle matters on your behalf.

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