Spanish Mortgages


The mortgage you get will depend upon your financial profile and the banks criteria. Lenders will want to know how much you earn and what your other financial commitments are (your personal balance sheet). As a general rule they will lend according to earnings multiples whereby your loan repayments on all your worldwide borrowing do not exceed 35% of your net annual income. However, if they think you have excellent career prospects, and that your income is likely to increase in the future (something that you would have to convince them of) they may be prepared to lend you more.


They also take into account the kind of property you want to buy. If you are buying a holiday home they will consider this riskier than a main home. They will assume you will default on your holiday home loan first if you get into difficulty. So, generally speaking, loan to value ratios for holiday homes are lower.


What kind of a loan to value can you expect in Spain? Typically 60% to 70%, though during the boom it was possible to get more than 100% using inflated valuations. Today, after the credit crunch, you might not get more than 70%, however, you should plan for around 60% as this is a common maximum. It all depends on the banks criteria.


How many years can you expect? It depends upon your age, but most mortgage terms in Spain run for 20 to 25 years.


the list below illustrates the typical fees you can expect when mortgaging a property in spain, some fees will vary dependant on where in Spain you are puchasing , the lender, broker, laywer etc. you should expect to pay somewhere between 11% - 15% in total fees.

  • Valuation Fee

  • Mortgage Opening Fee

  • Notary Fee

  • Lawyers Fee

  • Land Registry Fee

  • Stamp Duty (AJD) on Mortgages

  • Deed Arrangement Fee

  • Broker Fee