Let us help you find the best Spanish mortgage
We work with Tienda Hipoteca S.L. Their experienced, multi-lingual staff take the hassle and the cost out of arranging your mortgage. They search through all the mortgages available on the market to select the best product for you, they negotiate the terms and conditions of the loan, supply the lender with your paperwork, arrange the valuation and co-ordinate the completion process with your lawyer so all you have to do is provide the paperwork and leave the rest to them.
Unlike other mortgage brokers, Tienda Hipoteca do not charge for their services but receive a commission from the bank, so using them does not cost you a penny extra. Moreover, due to well-established relationships with the Spanish lenders, Tienda Hipoteca offer better products than you can achieve by approaching the banks directly, so using them can actually save you money as well as time and effort.
Current products include interest-only mortgages, re-mortgages, equity release products, bridging loans, construction mortgages and lots more. Whether you are moving to live in Spain, purchasing a holiday home, investing in the Spanish property market or are already a Spanish resident, Tienda Hipoteca offer friendly mortgage, tax and financial advice and have the expertise to obtain the best product for you.
For professional and honest advice, more information or to apply for a mortgage, complete the form below, call (+34)952587673 or visit the mortgages in Spain website.
Please complete the form below and a representative will get back to you within 1 working day.
Frequently asked questions about mortgages in Spain
How much can I borrow?
Lending in Spain is based on the valuation or the purchase price of the property, depending on the lender. For urban properties 60% - 120% can be achieved depending on the residency status of the applicant, and the purpose of the purchase. For "rustic" and commercial property only 50% is usually available.
What types of mortgages are there?
Most mortgages are on a capital repayment basis, although some banks now include an interest only term, or offer fixed rates.
Products change frequently, so to receive an accurate idea of the mortgages available, please contact one of our advisors.
What is the interest rate?
The interest rate in Spain is based on the EURIBOR, which is the European Central Bank base rate and changes every month (see Euribor Rates). Banks will charge a spread over the EURIBOR rate. The spread is normally between 1-1.5%; therefore 3.75 % (depending on mortgage product type and applicant's circumstances) is a good indicator of the rate available to non residents, although we can usually improve on this. In comparison to the UK, for example, where the rate is currently 4.75%, repayments in Spain are considerably more affordable.
How do I repay the mortgage?
We can refer you to a commercial exchange company who can arrange a fixed exchange rate for your monthly repayments for a specified period of time. This means that the repayments on your mortgage remain the same regardless of exchange rate fluctuation. This would be revised annually and is only applicable to certain mortgage products.
What documents do I need?
Employed Applicants
- Passport
- P60
- Last 3 months pay slips
- Last 3 months bank statements
- Bank reference *
- Employers reference *
- Credit report *
Self Employed Applicants
- Passport
- Tax Return
- Profit & Loss accounts for return
- Balance sheet to date
- Last 3 months personal & business bank statements
- Bank reference *
- Accountants reference *
- Credit report *
* required for 80% borrowing
How long does it take to complete?
Depending on your circumstances, the process can take from 2 weeks to 6 weeks. We recommend an average of 4 weeks to our clients.
How much is it going to cost me?
In general, if you are purchasing a property without a mortgage, you will need to pay approximately 10% of the property purchase price in taxes and fees. If you are buying with a mortgage you should allow for up to 13%, as mortgage fees vary.
The fees are listed below:
Purchase Costs
- 7% IVA (VAT)
- 1% Stamp duty
- 1% Legal fees (there may be a minimum to pay)
- Notary fees
Mortgage Costs
- 1% - 1.5% Set-up fee
- 1% Stamp duty (1% of mortgage value + 1% of total accrued interest)
- Valuation fee
- Notary fee
- Arrangement fee
Do I need a Spanish lawyer?
Getting an English speaking Spanish lawyer is of paramount importance. The lawyer will check to make sure the property is legal, and the debts, if any, registered to the property are being cleared from the sale proceeds. Lawyers also control the flow of money through client accounts, organise the connection of services, and if they have power of attorney can sign at the notary to complete on your behalf. If you would like us to recommend an independent English speaking Spanish lawyer we would be happy to oblige.
