Mortgages in Spain, Frequently Asked Questions

Living in Spain, and specifically living on the Costa del Sol, is a dream come true for many people. However, this dream involves some very important homework. If you are considering buying property in Marbella or property for sale in Estepona, you may have some questions when it comes to mortgages in Spain. Below we have complied a list of the most frequently asked questions when it comes to getting a mortgage in Spain.

Can we get a mortgage in Spain for a property in Marbella?

Well the short answer is yes, however, when it comes to non-residents wanting to buy a property in Spain, you need to know that there are limits to how much a bank in Spain will let you loan. As of today, banks will only let you loan up to 70% of the property value. If you are a Spanish resident then you can loan up to 80% of the property value.

How much of a mortgage in Spain can I qualify for?

The amount of a mortgage you can qualify for is dependent on your circumstances. However, for most people the debt they hold, including the new mortgage payments cannot exceed a total of 35% of your annual net income. Your bank will look at any assets you may hold, along with details about any other loans or debts you have. To determine how much you can qualify for the bank will run all the numbers.

How Long can I borrow money for and what are the terms and conditions?

For non-residents in Spain looking to get a mortgage, banks will offer up to a 20-year mortgage or so, up to the age of 70. If you are a resident of Spain, you can get a Spanish mortgage of up to 40 years, up to the age of 75. The banks in Spain currently offer either a variable or a fixed rate mortgage.

What documents do I need for a mortgage in Spain?

To apply for a mortgage in Spain, most likely, and this is dependent on your bank, you will need proof of income (last three months of payslips), an employer contract, your last income tax return, information on any current mortgages, credit cards, or loans, proof of any assets, and lastly a copy of any pre-agreement contract you have with any property you have your eyes on. Once you have gathered all this important information, you can now start the process. To find out what other documents you will need, contact your bank directly to get all the necessary information.

How much time does it take to get approved for a mortgage in Spain?

Once you’ve compiled all the necessary information and you have opened an account with the bank you want to work with, the approval process is a rather quick one. On average it takes around 4 weeks to know if you have qualified for the mortgage. Once you have approval, you must sign at a Spanish notary. Now you can move into your new Costa del Sol property.

What costs are involved in getting a Spanish mortgage?

Aside from the property costs when buying property in Spain, all mortgages come with additional costs. Most Spanish banks will apply a mortgage opening fee, which is usually 1% of the mortgage capital. If you decide to make an early repayment or you want to cancel the mortgage, most banks will charge you a fee for this as well.

Getting a mortgage in Spain isn’t as difficult as one might think. If your credit is good and you have a good payment history and if you have a good relationship with your Spanish bank, then getting a mortgage in Spain won’t be a problem.

To find out more about getting a mortgage in Spain, contact your bank. If you are looking to buy property in Marbella and want to know more about the buying process, please contact us to speak with one of our experienced real estate agents.