What to expect when applying for a Spanish mortgage

Written by Mat Marsden

Mathew works in the news team and has been living in Spain since 2005

June 14, 2022

A lot of foreign property buyers in Spain make use of mortgages, and they do so for a variety of reasons. In most cases, of course, it is to help afford the purchase, as it means that apart from the deposit and purchasing costs they can spread the cost out over time. In some cases the mortgage payments can be earned back through rental income, but even many who do not strictly need a loan to acquire a Spanish property use financing because it suits their purposes.

In other words, even potential cash buyers frequently take out a mortgage for their Spanish property purchase as the low interest rates offer favourable conditions under which to also reduce their initial outlay. Such buyers often opt for a 50% mortgage, where people who need an optimal amount of financing naturally try to achieve as high an LTV (Loan To Value) ratio as possible.


Primary characteristics

Typically, Spanish banks and other lenders will provide up to 70% financing for non-residents. For the purchase of a property of €300.000 this would therefore result in a loan of €210.000 (70%). Successful application for financing depends upon a number of factors that we will explain and assist you with:

  • Proof of income, either from work, passive income or ownership of assets – as reflected in tax declarations
  • Proof of assets and/or cash reserves
  • Credit history and accompanying rating
  • Other outstanding loans or debts, which indicate if you are over-leveraged (have a lot of loans to pay off) or not

There are other elements too, such as age and the available period of repayment, which in turn affects the length of mortgage – a factor in the size of the monthly repayment sum. We provide mortgages for non-residents, where the 70% maximum mortgage applies, and will guide you through the process of the documentation and proof of income required to obtain the best options and most favourable financing conditions available on the Spanish market.

Contact us to see what we can do for you.

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