Many guides about buying property in Spain assume that potential buyers actually have the money available, but if you are
considering buying a house in Spain because you live and work here, or because you simply want to invest in property in Spain,
you may want to consider taking out a mortgage with a Spanish bank.
Whether you want to buy a finca in the hills, a
holiday apartment on the Costa Almeria or a new home in Spain, taking out a Spanish mortgage may be the right solution for you.
Interest rates in Spain vary, but are generally much lower than in the UK, and competition between Spanish banks is
fierce. If you are interested in a property still to be built, you may find that the constructors already have an agreement
with a certain Spanish bank for all mortgages and you are left with little choice. If not, you would be wise to shop around
for the best deal.
Don't accept the first offer. Ask for a copy of one bank's offer and then take it to a
different bank to see if they can improve the offer - they often will. Then take the improved offer back to the original
bank - you may get a pleasant surprise!!
You will be expected to prove ability to pay (i.e. wage slips from the last
3 months and bank statements of the last 6 months or, if you are self-employed, copies of your last 3 years accounts (with
an auditor's stamp) and copies of you last 12 month's business bank statements and your last 6 months personal bank
statements). Proof of payment based on your ability to pay with income received from renting the property will not be taken
into account by Spanish banks. See our full list documents necessary to apply for a mortgage with a Spanish bank for residents
and non-residents.
Most Spanish banks currently offer mortgages of 60-80% property price over 5, 10, 15 or 20 years
depending on whether you are a resident in Spain or not.
Liabilities should not exceed 35% of your net monthly income.
Banks use the following variables to determine your ability to pay off the mortgage.
• Existing liabilities ie loans or
mortgages, monthly maintenance agreements.
• Future liabilities including the proposed loan.
• Present income
and investments.
Various UK banks are now offering mortgages on property in Spain, we have listed a few articles from
them below, along with links to the relevant pages.
Spanish mortgages from Own Overseas
Own Overseas from Lloyds TSB offers you an easier way to finance and buy a home abroad. From
mortgage quote to handing over the keys, we can support you every step of the way.
Using our local expertise, we
will take care of the foreign language and the legal system to help you make your chosen home your own.
If you’re thinking about buying a home in Spain, or perhaps you’ve already found the property you want to buy,
Own Overseas can help you by providing an end-to-end service that simplifies a complicated process and gives you peace of
mind.
Everything will be handled from the UK by our specialist team who will co-ordinate all aspects of the purchase
on your behalf.
Spanish mortgages from
Norwich & Peterborough BS
If you are thinking about buying a property
on the Costa Blanca, in Almeria or the Costa del Sol as your main residence, retirement home or for your hols, talk to
us. We’re rather good at sorting out Spanish mortgages and have many years of experience. The standard minimum
advance is £20,000 (unless stated otherwise).
Barclays Bank Espana
Offer
a wide selection of mortgage services to resident and non resident clients.
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