Through our independent mortgage brokerage Villalux & Mortgages Direct, we are able to offer subject to status Spanish Mortgages. More information »
Should you require a mortgage (hipoteca) to complete on your purchase, the process is straightforward and similar to that in the UK. A mortgage can be arranged either in Spain or in the UK. Both Spanish and UK banks have the same requirements for lending money on a property in Spain and all require proof of income and regular outgoings. The level of mortgage offered is directly dependent on your financial status and also the value of the property you wish to purchase. The property must have had a registered title deed for 2 years or more and no Spanish or UK bank will consider a mortgage if the property does not meet this requirement.
Spanish banks will generally lend 60% to 70% of the value of the property and will require the mortgage to be fully repaid by the age of 70 normally over a repayment period of 5, 10 or 15 years. Before the bank can make a decision about your application, the property will have to be valued by the bank valuer (tasador) who will use a set ‘value per square metre’ neither the market value nor the price you are paying for the property. You just need to be aware of this when you are calculating the level of mortgage you require in order to buy. We will assist you through this process and we will accompany the valuer to the property. We always do our best to help things along and will keep you informed of progress at all times.
The cost of arranging a mortgage is likely to add about 2% to your overall buying costs. If the sellers of the property you are buying already have a mortgage on the house then it is sometimes possible to transfer the existing mortgage from the seller to the buyer which might reduce the mortgage set up costs.
Here is some additional information which will help to answer some of the questions you may have about moving to and living in Spain. If you can’t find what you are looking for here, please just give us a call or send us an email and we’ll be happy to help you.