Arranging a mortgage in Spain and the Canary Islands can seem a daunting experience but with the right advice and guidance can be just as simple as arranging a mortgage in your home country. As with every other aspect of the property purchase, we advise you to work with reputable and established lenders who have experience in arranging foreign national mortgages.

Please find a simplified breakdown of the process and costs that may be associated with obtaining a mortgage.

Loan Value - currently in Spain and the Canary Islands mortgages are offered up to 70% for non residents. This is based on the valuation of the property and not the purchase price.

Interest Rate – Spanish mortgages are linked to the Euribor rate which could be either a monthly, quarterly or annual rate. Rates do vary from bank to bank and depend on whether it is a fixed, variable or interest only mortgage you are looking for. A good mortgage broker will offer the best advice as to which suits your requirements better.

Mortgage Term – Spanish mortgage terms range from 5 – 40 years and are age dependent. Most banks will want the mortgage to be repaid by the age of 70.

Costs – You should budget between 2-3% of the loan amount on top of any purchase costs you for setting up the mortgage.

Lending Criteria Employed – 3 months payslips, P60, 3 months bank statements, employer’s reference, copy of your passport.

Lending Criteria Self Employed – 2 years tax returns, accountants reference, 3 months bank statements, copy of your passport

For a more detailed information pack on mortgages in Spain and the Canary Islands contact us.