![]() If you would like a Spanish mortgage quotation specific to your individual circumstances, please get in touch with one of our Spanish qualified mortgage advisers (ICIs) for a free consultation. Other things like debt repayments – including credit cards, car loans, home improvement loans and any other mortgages you might have, as well as your credit score, will also be taken into consideration by banks when determining how much you’re able to borrow. Having a stable monthly income and applying early in the purchasing process will improve your chances. To secure the best mortgage rates for foreigners buying Spanish property, you should be able to demonstrate solvency, proving that the repayments are no more than 35% of your income. your financial stability and creditworthiness). The interest rate can range from 2-4%, depending on the property value and your buyer profile (e.g. While fiscal residents in Spain may be able to get a variable mortgage, non-residents are often restricted to a fixed mortgage. However, banks can sometimes provide up to 100% of the value for a mortgage on repossessed Spanish properties that they list themselves. The majority of foreigners will receive an offer of 60%, meaning you must be able to pay for the remaining 40% yourself. Non-residents will also have higher interest rates and shorter repayment terms. However, for those purchasing a Spanish property from overseas, the maximum amount you can borrow is 70%. Banks sometimes base this on their own assessment of the property’s value rather than the purchase price, so it’s possible to get a better rate if the assessor’s value is more than you paid.įor residents of Spain, mortgages can go up to as much as 80% of the purchase price or valuation figure. The percentage of the property value (before tax) that the bank will finance is known as loan-to-value. How much can I borrow for a mortgage in Spain?Īre you considering buying your first Spanish property? Whether you’re preparing for a future investment or looking to secure a holiday home as soon as possible, most non-residents require a mortgage to buy their home in Spain. Identify how much of a deposit you’ll need and when it’s payable – making sure to organise any necessary finance as soon as possible.Ĭheck out our Spanish mortgage calculator to find out how much you could borrow. Work out your budget and look at the total cost of buying, including any legal fees, taxes and so on. This is why you should always have your property surveyed and valued beforehand. If there’s a problem with the property, it’s better to find out about it before you buy – as solving any issues afterwards can be even more expensive. It’s vital you know how the buying process works before you go ahead and start looking at properties. The process of buying in Spain is significantly different than here in the UK, so you should never assume that it works the same way.Ĭutting corners to try and save yourself some money is certain to cause you problems further down the line. Here are some all-important do’s and don’ts of buying a property in Spain: Venturing into the foreign property market can be difficult, especially if it’s your first time. Speak to us to find out if you qualify for one of our white label market-leading Spanish mortgage products. Spanish mortgage interest rates vary, but we recommend you use our standard exclusive rate mortgage deal of 2.20% for your initial mortgage calculations. The maximum mortgage term is 40 years, but this is likely to only be available to Spanish nationals who are full-time residents in Spain. The average mortgage term in Spain is 20 years, although 25 or 30 years may be possible on a case-by-case basis. ![]() Just enter the mortgage amount you wish to borrow, the term over which you intend to pay it off, and the interest rate – then hit the ‘Calculate’ button.Īs there are no buy-to-let or interest-only mortgages currently available in the Spanish mortgage market, the monthly mortgage amount is calculated on a capital repayment basis. Use our Spanish mortgage calculator for a quick and easy way to calculate your monthly mortgage payments.
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