Mortgages: What You Need to Know

Thinking of moving to Spain? Have you found the Spanish home of your dreams? Ready to take the plunge and make an offer, but need to have your mortgage in place first? Don’t worry, we can help!

From finding the right mortgage to making your mortgage application, our team of qualified experts will be by your side every step of the way: from your first property viewing to the day you collect the keys to your new home! Here’s everything you need to know about the wide range of mortgage services we offer to get you to wear you want to be:

How We Can Help You

We Offer Free Advice

Consulting with our mortgage experts is completely free of charge: Whether you’re ready to make your mortgage application or you simply want to take a pre-qualification test to see if your application would be approved, our mortgage advisors are ready and waiting to work with you at no cost.

Ready When You Are

Our team work quickly and efficiently: no matter what your mortgage question, they can find the answer. What’s more, we have an in-house risk team who are perfectly placed to evaluate your situation and determine which banks will lend you the money you need, and at the best rates available.

Your Needs Come First

We appreciate that every mortgage applicant is unique. From your financial situation to the speed that you want your application to take place, we will take the time to listen, to understand your needs, and to get you the best deal.

Specialising in Non-Resident Mortgages

Concerned that securing a mortgage in Spain as a non-resident will be complicated? We specialise in securing non-resident mortgages, and in Spain it is still possible to secure a mortgage for up to 70% of the purchase price of your new property.

Offering Equity Release

Have you already purchased a home in Spain? Ready to make home improvements, or need to release funds for another big life occasion? Then we can assist you with that too! We can help you to release equity from your Spanish home quickly and efficiently. As a general rule of thumb, you can release up to 60% of the value of your home in this way.

Assisting Spanish Residents

Have you secured Spanish residency, or are you a Spanish national? Then you can secure a mortgage with up to 100% loan to value ratio, and we can help you to find the perfect mortgage for you!

Understanding the Types of Mortgages Available in Spain

When it comes to choosing a mortgage in Spain there are three main types for you to pick from, and we are able to offer all of them, whilst also assessing your unique long and short term needs to ensure that the type of mortgage you choose works for you in the long term. The three types of mortgages available to you are:

Variable Rate

All variable rate mortgages in Spain are linked to the Euribor (this is the name for the interest rate used to calculate Spanish mortgages).  At present, the Euribor currently stands at below zero (today's rate is 0.3%) and this is an all-time low for interest rate levels in the country. In real terms, this means that borrowing money in Spain is very cheap at the moment. It doesn’t matter whether you’re an international buyer or a Spanish resident, these low interest rates mean that there are some fantastic variable mortgage rates available right now.

Fixed Rate

Whilst variable rate mortgages are linked to the interest rate in the country, a fixed rate mortgage will fix the payments that you pay each month for the full length of your loan.  Whilst the rates that you are offered are likely to be higher if you choose to opt for a fixed rate mortgage, it removes the unpredictable element of securing a mortgage. You know exactly what you will have to pay every month, and can plan your finances accordingly: something that is worth paying a little extra for, for many mortgage holders.

Mixed Rate

A mixed rate mortgage does exactly what it says on the tin: it offers a mix, or combination of both variable and fixed mortgage rates. In real terms, that means that you may well choose to fix your mortgage for a set period of time (five or ten years, for example) and then your mortgage will revert to a variable rate mortgage, where you pay whatever the interest rate at this time is. These are the least common of the three mortgages being offered in Spain, and as a result they are not offered by all lenders. But if this is the type of mortgage you’re most interested in, our advisors are perfectly placed to help you find the mixed rate mortgage that will work best for you.

Securing a Mortgage in Spain – All Your Questions Answered

The loan to value ratio (LTV) available to you will depend on several different factors, and is based on either the property valuation or the property purchase price: whichever is the lower figure. In some limited circumstances you may be able to secure a LTV of up to 100%, but for most individuals you can expect to be offered a maximum of 70% LTV if you pay tax outside of Spain, a maximum of 80% of LTV if you’re a Spanish taxpayer, and 70% if you’re a Spanish taxpayer purchasing a second home.
As well as considering the loan to value ratio, the amount you can borrow will also depend on your income and any debts that you have. If your combined outgoings (for example your mortgage payment, car repayments, and any other loan repayments) add up to more than 40% of your after tax income, then most Spanish lenders will reject your application. Our in-house mortgage assessment team can help you calculate this figure and advise whether or not you are in the right position to apply for the mortgage level you want.
The two standard and most frequently offered mortgage types in Spain are fixed and variable rates (depending on whether you want your mortgage rate to track the interest rate or you want it to be fixed at a set amount for the full term of your contract). You can also opt for a mixed mortgage, which is a combination of both.

There are no interest-only mortgages available in Spain.
You will need not only to detail your income in order to apply for a mortgage, you should also be able to demonstrate it. Banks in Spain will only accept income which can either be shown on a tax return or comes from earnings from a property with rental agreements in place (which can also be demonstrated). This is something to consider when you’re calculating the income that you will display on your mortgage application forms.
We won’t charge you a penny for out consultancy fees to help you work out how much you can borrow, or whether or not your mortgage application will be accepted. Our standard fee will only be charged when you make the decision to go ahead and accept a mortgage offer from a lender, and then go ahead to purchase your property.
You can be no older than either 75 or 80 years of age when the mortgage completes and you make your final payment (depending on the lender). That means that if you are 60 years old then the maximum mortgage term you can apply for is 15-20 Years. If you are older than this then get in touch with our mortgage experts, who will be able to answer any other questions, and help you with your application.
Since the Spanish financial crisis of 2009, home equity release has become increasingly difficult in Spain. But that doesn’t mean that it’s not possible: when it comes to equity release, every situation (and every property) is different, which is why we don’t offer generic advice about these services, instead asking that you get in touch with us directly. This will enable us to better understand your situation, and work out the best way that we can help you.
In order to make your full mortgage application, you will need the following documents:

  • Copies of your Passport / NIE (for all parties that will be on the mortgage)
  • Your most recent tax declaration or P60
  • Your last three pay slips
  • A bank statement of the last 6 months
  • An Experian credit report

Four Great Reasons to Work with Us

We offer mortgage advice you can trust, completely free of charge, and without any obligation to arrange your mortgage through us. We’ll work with you to understand your needs, take your information, and then present you with a wide range of mortgage options to choose from. In return, you’re only obliged to use our services if you want to proceed with one of the mortgages offers available to you. It's transparent, it’s easy, and it’s fast too. And if that’s not enough? Here are three other great reasons to work with us:

  1. The rates that we offer are better than the high street. Even if we present you with a mortgage option from your local high street bank, the rates that we can offer will almost always be better than the rates you will achieve if you visit the lender directly.

  2. Our mortgage advisors are both Spanish and English speaking. There’s no need to be concerned about language barriers when our mortgage advisors can speak to you in whichever language you choose, whilst also helping to translate any Spanish mortgage offers into English for you, enabling you to better understand the process, every step of the way.

  3. We offer a fast turnaround. Whilst other mortgage advisors and banks offer slow turnaround times and are tied up with bureaucratic details, we are able to offer a fast turnaround time that is ideal if you want to get through the paperwork and into your new front door as quickly as possible.

  4. We offer Added Extra Services. As well as all of the usual mortgage services that you’d expect, we are also proud to add extra value to our clients: we will provide a free legal check by our in-house legal team, free NIE and free qualification all as standard. Ensuring that you get the mortgage you’re looking for seamlessly, and without any added worries or issues, is at the heart of everything we do.

Get in Touch

If you’re ready for your free expert mortgage advice then why not get in touch with our established and highly qualified team today?

How can we get in touch with you?

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