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Getting a Mortgage in Spain

Getting a mortgage in Spain

How to apply for a Spanish mortgage whilst living abroad or from the UK

If you are buying a house in Spain, for those living in the UK or UK expats living and working overseas, you will need to apply for a Spanish euro mortgage from a local Spanish bank. Getting a euro mortgage in Spain can be a challenge for some, particularly if you do not speak Spanish well.

However, our Spanish mortgage service has been designed to solve these problems, but remember, it can be a good idea to have an approval in principle first, to help negotiate with both the local seller and their agent.

Applying for a Spanish euro mortgage from abroad can be complicated, so allow up to 8 weeks at least.

Here’s how to get a mortgage in Spain:

  1. You will need a 30% deposit, i.e. savings equal to 30% of the house sale price.
  2. Don’t forget, you will need a local Spanish bank account to repay your mortgage. The bank will help with this.
  3. To qualify for a Spanish euro mortgage, you will need an income, whether that is a salary, a pension or three years of accounts, if self-employed.
  4. Affordability of the loan. The Spanish bank will want to be sure you can pay back the new loan. Expect to be asked to provide information on your expenses as well as income, especially if you have other loans.
  5. Do you want to repay the loan early? The better lenders will allow repayment of up to 25% of the capital outstanding each year without penalty.
  6. How do you plan to change your home currency savings into euros for the deposit? We can suggest UK regulated foreign exchange specialists whose service is normally free and better in many ways than banks. A better exchange rate means you save money on your deposit.

Your home may be repossessed if you do not keep up repayments on your mortgage.
Changes in the exchange rate may increase the sterling equivalent of your debt.

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