Mortgages in Spain

When buying a property in Spain, in some cases you will need to arrange a Euro mortgage to finance the purchase. At Z-Yachting we deal with one of the largest banks in Spain who can offer you a competitive rate on a € mortgage. You can obtain up to 80% of the valuation of your property. Currently the variable rate is 3.5%.

You will need to supply our mortgage department with the following documentation once you have reserved your property:

Copy of passport
3 months payslips
P-60 form
However if you are self employed we will require the following:

Copy of passport
Last tax statement
Accounts for the previous year

The only way to buy a home in Spain is, come and see yourself! We will show you the properties in your preferred area and price range, answer all your questions, and allow you to thoroughly inspect each one. When you make your decision we explain all the details including total costs annual costs, legal formalities, flight offers, letting potential… everything for ‘YOUR NEW HOME IN SPAIN’.

People who have euro-based mortgages on properties at home and abroad are suffering as their repayments soar. Experts point out that euro-denominated mortgages are not restricted to people buying holiday homes in Spain, France or Italy – some brokers marketed them to “sophisticated buyers” in Britain.

What types of mortgages are in Spain?

Almost all mortgages are capital repayment and some include an interest only term normally between 2 – 10 years which then reverts back to capital repayment for the balance of the mortgage term. Fixed rates do exist but the interest rates are expensive.

Non-resident mortgages

Spanish mortgages for non-residents are normally limited to loans of 70% of the bank valuation or purchase price, whichever is the lower.

Resident mortgages

Spanish mortgages for residents are generally at more favourable terms and conditions than those for non-residents, with the exception of second homes purchase. Residents benefit from lower interest rates, lower charges and higher loans to valuation. It is therefore very important to establish whether you qualify as resident or non-resident for that particular lender as early as possible.