Mortgages are arranged in Spain by the Spanish Banks and the best time to arrange one is when you have found the property that you wish to purchase. We do not pretend to be mortgage brokers but will arrange for you to speak to a suitable and reputable Financial Adviser in Spain should this be required.

We can, however, give a general outline as to how mortgages work in Spain. Interest rates in Spain tend to be competitive and the types of mortgage products offered are much like in the UK, i.e. variable rate, fixed rate, interest only, etc.

The availability of a mortgage depends upon both the property and your own specific circumstances, much like it would in the UK.

Normal maximum mortgage is 80%. However it is common in Spain for a mortgage to be only 60% or 70% of the valuation. Some developers have special arrangements with their bankers so that they can offer mortgages of 90% or even 100%.

Your circumstances

As a rule, any mortgage payments should not exceed 35% of your net disposable income. Thus, mortgage payments in Spain should not exceed 35% of your net income (after tax) minus any other mortgage or loan repayments that you may have at the time of purchase.

Items required when arranging for a mortgage: 

• A photocopy of your passport.
• If employed, your last three wage slips + most recent P60.
• If retired, your most recent statement of pension income.
• If self employed, copies of your last three years Audited Accounts.

All information provided on this page is offered for guidance only and professional advice is advised.

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