Mortgage for Your Spanish Property
Yes, buying a home in Spain with financing is possible
Many people dream of owning a property in Spain, while others assume it’s out of reach. The good news is that buying a Spanish property with a mortgage is often very achievable, even for non-residents.
In fact, waiting too long (for example until retirement) can be costly. Property prices in Spain tend to rise over time, meaning that delaying your purchase could result in paying significantly more later.
At NICLA-RMB Inmobiliaria, we help you understand your financing options early on, so you can plan with confidence and avoid unnecessary delays.
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Loan-to-Value (LTV): How Much Can You Borrow?
For non-residents, Spanish banks typically offer mortgages of 70% to 80% loan-to-value (LTV). This percentage is based on the official valuation of the property, not the agreed purchase price.
It’s important to note:
• The mortgage amount cannot exceed the value stated in the Escritura (title deeds).
• Even if the valuation is higher, banks will not lend more than the declared purchase price.
This means you’ll usually need to contribute 20-30% of the purchase price from your own funds, plus purchase costs.
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Types of Spanish Mortgage Products
Most Spanish mortgages are:
• Variable-rate
• Repayment-based
Variable-rate mortgages are usually linked to the 12-month Euribor (European Interbank Offered Rate). Your interest rate is reviewed annually.
Typically:
• The first year’s interest rate is calculated using the Euribor rate at the time of completion, plus a fixed margin set by the bank.
• After the first year, the rate is reviewed annually.
Some offshore or international banks can offer mortgages in sterling or other major currencies, secured against your Spanish property and linked to the relevant base rate (for example, the Bank of England base rate).
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Fixed-Rate & Interest-Only Mortgages in Spain
Access to fixed-rate and interest-only mortgages in Spain is limited.
• Fixed-rate mortgages are usually more expensive than variable-rate options.
• Fixed rates often apply for the entire mortgage term, rather than for short introductory periods as in some other countries.
• Interest-only mortgages are rare and usually subject to stricter conditions.
We’ll help you understand which products are realistically available based on your circumstances.
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Mortgage Terms & Age Limits
Spanish mortgage terms typically range from 5 to 40 years, depending on:
• Your age
• The lender
• Your financial profile
Most Spanish banks expect the mortgage to be fully repaid by age 70, although some lenders will consider mortgages up to age 85.
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Mortgage Costs & Fees in Spain
All Spanish banks charge an arrangement fee for setting up a mortgage.
Key points to know:
• Bank fees are not payable upfront
• If you decide not to proceed, you won’t be charged
• Mortgage-related costs (mortgage tax, land registry fees, and part of the notary costs) are usually deducted from the gross mortgage amount
In most cases, mortgage costs cannot be added on top of the loan unless the valuation allows for it. This makes accurate budgeting essential.
We generally advise allowing at least 12% of the purchase price to cover all purchase and financing costs in Spain, so you’re fully prepared for completion day.
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Currency & Repayments
• Mortgages from Spanish mainland banks are provided and repaid in euros
• Offshore lenders may offer mortgages in other major currencies
• Interest rates are linked to the base rate of the chosen currency (for euro mortgages, this is usually Euribor)
Choosing the right currency can have long-term financial implications, and we’re happy to guide you through this decision.
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Calculate Your Mortgage in Advance
Be prepared before you travel to Spain
If you’re planning to visit Spain to view properties, knowing your financial possibilities in advance is crucial. There’s nothing more disappointing than finding the perfect home, only to discover later that financing isn’t possible.
We strongly recommend speaking with a mortgage consultant before your viewing trip. This way:
• You’ll know exactly what you can afford
• You can focus on suitable properties
• You’ll view with confidence and peace of mind
At NICLA-RMB, we can help put you in touch with trusted mortgage professionals so you arrive well prepared.
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NICLA-RMB | Expert guidance on Spanish mortgages, so your dream home stays within reach.
