Mortgages

Mortgages

Are you considering a Spanish mortgage to purchase your property?
If so, it is important to know how much you can lend and all of the associated costs, before you start hunting for your dream new build property. It always makes sense to have a clear property budget before you start your search, so not to waste your valuable time.

Mortgages in Spain - As a non-resident, you can lend up to 70% of the purchase price of the property, from an array of mortgage lenders in the market. To help navigate all the options and find the best mortgage for you, we highly recommend using a specialist broker. They will be able to answer any queries, run through all the associated costs and provide you with a no obligation quote.

*It can be slightly more complicated with off plan new build properties for sale (depending on completion dates, etc.), but there are many options to discuss. Our recommended mortgage advisors Mortgage Direct will clarify everything you need to know.

We highly recommend speaking to a Spanish Mortgage specialist early on in the process so you can obtain an agreement in principle (AIP), if you choose to go down the Spanish mortgage route to fund your purchase. It is completely free and places you in a clear position with regards to how much you can borrow – it is much easier to search for a property when you have a clear budget in mind. With a mortgage agreed in principle and a currency exchange account open, you are ready to move forward once you find that perfect new build property in Spain.

Many clients also investigate other options to finance their new home, for example, you can release equity from your UK property or choose to downsize – thereby making funds available to complete the purchase of your new build Spanish property without the need for a Spanish mortgage. If you take this option, you will be a cash buyer, which is very desirable when negotiating a sale for a new build property, or if more than one party are interested in the plot/new build villa/apartment, etc.

Here at New Spanish Properties, we recommend you talk to our partners, Mortgage Direct.

Since its inception in 2006, Mortgage Direct has grown to become Spain’s leading independent mortgage broker. During this time, they have developed close relationships with lenders, agents, lawyers and other professionals in the industry, giving them a deep understanding of the market in which they operate.

Mortgage Direct’s service is super-friendly, professional and 100% transparent. They offer expert advice on Spanish mortgages to clients from around the world, negotiating preferential terms and bespoke mortgage solutions with all the main lenders.

With property prices in Spain starting to rise and lenders showing an increased appetite to lend on more attractive terms, more mortgage brokers are entering the market. Mortgage Direct endeavour to continue to provide the very best advice and to achieve the best mortgage conditions for their clients. They aim to educate potential clients before they start the mortgage application process, to ensure they are fully informed from the outset.

Why use Mortgage Direct?

  • Best mortgage conditions – exclusive to Mortgage Direct’s clients
  • Work with all worldwide banks that lend in Spain
  • Quotes within 24-48 hours
  • Money back guarantee & competitive fees
  • No obligation & fully independent advice
  • Professionally qualified advisers (UK FSA registered)

Important facts

  • Maximum loan-to-value (LTV) – the maximum mortgage for non-residents is 70% of the purchase price or valuation (if lower).
  • Maximum term & age – 25 years with most banks up to a maximum age of 75 years
  • Affordability test – in basic terms, 30-35% of your net monthly income, after tax, has to cover all monthly debts (including rental payments), plus the new Spanish mortgage payment.
  • Cash for purchase – if you qualify for a 70% mortgage, you will need 30% of the property price in cash, plus around 12-13% for the fees and taxes (around 40% of the price in cash).

Enquire Now

Due to our long-standing relationship with Mortgage Direct, a key account manager will call or email you directly when you complete this form.

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