Examples of mortgages available in Spain to non-resident buyers

There are increasing range of mortgages available in Spain, including:

• Repayment mortgages
• Repayment mortgages with an interest only period
• Interest Only mortgages
• Self-cert / Non-status mortgages
• Construction mortgages
• Mortgages for equity release

Below you will find examples of some of the above products.

REPAYMENT MORTGAGES

Terms for a “standard” Spanish mortgage for a non-resident buyer who meets normal lending criteria in terms of income and affordability ratios would be along the lines set out below BUT it is important to note that each bank we deal with has specific terms and conditions as well as eligibility criteria and therefore these are only guidelines. 

Maximum term – 30 years or up to age 70 or 75, whichever is sooner but we also have some banks which will go to age 80
Loan to Value ratio: up to 80% but more usually 70%
Interest rate:  Between 0.6% - 1.5% over Euribor
Redemption penalty: 0 – 1%, depending on lender
Opening Fee:  Between 0.5 and 1.5%

REPAYMENT MORTGAGES with an Interest Only period

Maximum term – 40 years or up to age 80, whichever is sooner, with up to 15 years on an interest only basis
Loan to Value ratio: 70%
Interest rate:  Between 1% - 1.25% over Euribor
Redemption penalty: 0%
Opening Fee:  Between 1.0%

We also have lenders who will go to 80% LTV and up to 10 years on an interest only basis (max 30 years).

SELF CERT / NON-STATUS MORTGAGES

There are currently 3 lenders who offer self certification mortgages to non-residents. All three offer an interest only period. One will lend up to 50% of valuation, another will lend up to 40% of valuation to UK, French and German nationals and the third will offer up to 60% LTV to UK and Irish nationals on an interest only basis for the full term

EQUITY RELEASE

There are a variety of equity release mortgages available and obtaining up to 75% LTV is possible. For LTVs above 50% some banks require proof of destination of funds, e.g. an official estimate for work to be done to improvement property or purchase of another property.

CONSTRUCTION MORTGAGES