If you are lucky enough to be able to purchase your Spanish property without the need to finance the transaction then you will not be alone – in a recent meeting with our lawyers 12 out of 14 clients completing their purchase that month were buying without the assistance of a mortgage.

If you will be requiring finance you can raise the finance in the UK or here in Spain. There are an increasing number of sources of finance within the UK who are willing to lend against a Spanish property purchase. If your preference is for a UK sourced financing package then in general it is far better to at least secure agreement “in principle” before you come to Spain to find the property of your dreams.  Far too many purchasers, having held back from committing to their purchase whilst in Spain to return to the UK to sort out their finance, have discovered to their horror that upon coming back to Spain that the property has been sold and that prices have gone up in the meantime. Advice to secure UK finance “in principle” before you come to Spain is good advice.

If you prefer to raise finance here in Spain again there are numerous sources available, but here are the two main sources.

Financing from the builder/developer
If you are buying a brand new property from a builder or developer, the builder or developer’s own bank will often have the most attractive financing options available for property purchasers.  The paperwork will be standardised and ready in a format that most parties will require, but your lawyer should always check the paperwork carefully.

Bank loans and mortgages
With the introduction of the Euro and the lifting of virtually all exchange controls, both Spanish residents and non residents can now obtain loans and mortgages against a Spanish property… in any currency from any bank in the world, in theory at least.  With inflation and interest rates at an all time low in Spain, Spanish bank mortgages are now being offered at low rates compared to the rest of Europe.  Mortgage terms of 20 to 30 years are available.  Mortgages of up to 100% have been offered in the past, although 70% of the property value is considered to be the current maximum for non residents, 80% in the case of a brand new property where the buyer is arranging the mortgage with the developers own bank.  Terms, Conditions, Penalty Clauses and Interest Rates all vary greatly between banks and building societies so shopping around is advisable.  Typically Spanish building societies offer lower interest rates and lower penalty fees than Spanish banks, although the Spanish banks are catching up to the potential market from foreign investors.

Mortgage Calculators
Please see our 'Mortgage calculator' page containing website addresses that you might find useful.  Simply click on 'Mortgage calculator' in the column to the left of this page under the bullet point heading 'Finance'.

Mortgage Advisor
We have our own mortgage advisor who can help you secure the mortgage you require (subject to terms and conditions from the bank of course). We have helped people where other companies and banks have not been able to, so we can help you, and even if you have purchased a property elsewhere, i.e. not through ourselves, we are still happy to help you secure a mortgage, so please phone us for further details.