Spanish mortgage options for UK citizens

Last post: Jun 4, 2013

What's available in the Spanish mortgage market? Find out here.

The lure of the Spanish sunshine has always been great for the British holidaying abroad and though some have been burned in the Spanish property market in the past, the recent collapse in prices is tempting many to buy a holiday pad or a retirement villa on the Spanish coast. For those who are tempted there are certainly many mortgage options available so we want to briefly blog about what can be achieved. What is available in the Spanish mortgage market for UK citizens?
  • Loans up to 70% LTV (LTD is reduced to 60% if income is made up of dividends or reduced to 50% if you are buying on one of the Spanish islands)
  • Terms up to 25 years
  • Rates from Euribor + 4% (first year fixed at 4.5%)
What are the eligibility criteria?
  • Applicants must pass a credit check
  • Their income must be sufficient to meet the affordability tests i.e. the total monthly cost of servicing all debts they have (UK mortgage, unsecured loans, credit card, other BTL properties etc) including the proposed cost of the Spanish mortgage they are applying for must not exceed 35% of their net monthly income
  • Maximum age to apply is 75
  • You don't have to be a UK citizen as these mortgages are available to all non-Spanish nationals
Is there anything else to note?
  • Buying a property in Spain is more expensive than buying one in the UK. Over and above your agreed purchase price you should allow another 12-13% of this price for associated costs and taxes. These costs are deducted from your mortgage amount on the day of signing and your solicitor should give you a break down of them
  • Having Life Insurance is generally a prerequisite for getting a Spanish mortgage
  • Most Spanish mortgages have Early Redemption Penalties of 0.5% for the first 5 years and 0.25% thereafter
For further information on the process of buying a property in Spain and getting a Spanish mortgage you should see our web page here To make an enquiry and get a no-obligation quote all we ask is that you complete the form on our Spanish mortgage page here or call us on 0845 1260350. We will take some more details from you and let you know what exact terms are available to you.