Mortgages

To finance a purchase of your new property, there are several different options available to you, both in Spain and abroad. The main difference between securing finance abroad and in Spain is that whereas the former can be arranged to finance stage payments, the latter in only available on completion.

If you decide to raise the funds abroad, you can do so by either re-mortgaging an existing property or, by taking out a personal loan. In either case, you will need to transfer the funds from a bank account abroad to your bank account in Spain.
Alternatively, you may wish to consider raising the funds for completion through a Spanish mortgage. Spanish banks offer competitive mortgages with low rates of interest, to both non-residents and residents of Spain. Typically, the banks will grant up to 70% of their valuation of the property for a term of up to 20 years.

Spain offers several kinds of mortgages including fixed and variable rates or a combination of both. Endowment or pension-backed mortgages are not available, although interest-only mortgages are now being offered by some lenders.

The Bank will need documentation from you to be able to consider your mortgage application including a bank reference, copy bank statements, copy income tax returns, copy salary slips or, copy accounts if you are self employed.

If you are buying Off-Plan the developer may already have a mortgage in place, which you can simply take-over on completion, subject to your financial status.
The mortgage arrangement fees for securing a mortgage offer from a Spanish bank amount to approximately 3% of the mortgage advance. The fees include Stamp Duty, bank’s commission, legal, notary and land registry fees.

Absolute Estates works closely with a select group of financial advisors that can assist you in securing Spanish mortgages at competitive rates.