In general, Spanish Mortgages and the Spanish Banking system if different to what you may be used to from dealing with Banks in your own country. 

It is therefore important to have mortgage specialist that knows the system and can guide you through the process using their extensive experience in dealing with Spanish Banks and of course, arranging Spanish mortgages.

As you would expect, the Spanish mortgage market changes regulary.  For this reason, Easy Mortgages Spain constantly checks the latest mortgage products with Spanish Banks and Building Societies to make sure we can offer clients the best and most competitve mortgage products on the market at ALL times.

Although mainly due to cultural differences and lack of regulatory requirements compared to the UK, it can be very frustrating if you are not aware of what to expect before you make your mortgage application.

Spanish mortgages Considerations:-

Does "Yes" mean Yes?

A "Yes" from a Bank manager does not mean your mortgage will be approved, they rarely have authority to approve mortgages

Underwriting Criteria

Spanish banks have very different underwriting policies and view risk differently and some Banks may credit score and application as well as credit search the applicant.  Some Banks can even refuse certain types of everyday occupations. e.g builders. 

I applied for the best deal...

It not uncommon for the head office to changes the mortgage conditions of the product you are applying for without any reason or justification so you may not always get the deal you are applying for.

The property is worth a lot more than I am paying for it

Spanish Banks will lend against the purchase price or valuation, whichever is lower.  Even if the property value is twice as much as the price, they will only lend against the lowest figure

In the UK, we can have the valuation within 24 - 48hrs

Property valuations take longer to complete in Spain and every property must be visited, typically it takes around 3 - 5 working days to receive the valuation report from the day the property is visited

Can I have that in writing please

Only a few Spanish Banks issue a mortgage offer / binding offer document.  At best, your Mortgage adviser will receive an email from the Bank manager confirming your mortgage approval, confirming rates, terms and conditions so don´t be suprised by the lack of formal paper work.

Everything is subject to change

Most Spanish mortgages are negotiable so the standard offered conditions can usually be improved for the right clients.  The Bank can also exchange better interest rates if you take additional products from their Bank such as home insurance, life insurance, a credit card e.t.c

What are these extra charges for?

It is common for Banks not to warn you of additional fees, costs or insurances for the mortgage at the outset and inform you just before completion when you have little time left to change the mortgage product.

I´ve got an excellent mortgage deal....haven´t I ?

There are 5 different bases commonly used for interest rates in Spain (including 4 different Euribor base rates!) so your deal always needs to be checked by an expert to confirm you have a good deal

My Estate Agent / Lawyer is arranging my Spanish Mortgage

Estate Agents and Lawyers rarely have the correct financial qualifications or experience to give adeqaute financial advice, espcially on something as important as a mortgage.  Usually, they will take you to a local Bank they know or have worked with for years but this does not mean it is the best mortgage on the market.  For example, even a small difference of 0.25% per annum on the interest rate can end up costing you thousands of Euros in extra interest over the mortgage term

With all of the above points taken into consideration, it is paramount that you have a Spanish Mortgage specialist on your side to guide you through and ensure your mortgage is the most competive and best suited mortgage for your needs.

Visit our Frequently Asked Questions page (FAQ´s) for more info.