Buying a property in Spain – Mortgages

If you are thinking about buying a property in Spain, and would like to take advantage of competitively priced financing, you should start arranging your Spanish mortgage as soon as possible.

Spain’s property market is a far cry from the fragile bubble that existed before the global financial crisis of 2008. Increasing government regulation of financial institutions and more effective oversight of banks and lenders has prompted a culture of financial due diligence and safe practice.

The result is a market that offers property investors stability and assuredness, coupled with consistently rising prices, persistently low mortgage lending rates, and a growing market for long term rental property which promises inflation-beating rental returns.

Start your Spanish mortgage research early on to avoid paying through the nose later.

The advantages of arranging your Spanish mortgage at the start of your property search are as follows:

  • It costs you nothing to start early
  • Enables you to negotiate for the best property at the best price
  • Forward planning helps you clarify the advantages and disadvantages of taking out a mortgage in Spain and make the best decision as to how much, if at all, to borrow
  • Arranging your Spanish mortgage in good time allows you to find the mortgage in Spain that best suits your requirements and avoid overpaying
  • By taking steps to arrange your Spanish mortgage at the start you will have a better idea of how much you can spend on your Spanish property and can work out the likely future financial implications of your purchase
  • Having your Spanish mortgage in place reduces the risks of you losing a Spanish property that it has cost you so much to find, and means one less source of anxiety and pressure when you are trying to close on a Spanish property


Can I get a mortgage in Spain as a non-resident?

Spain encourages foreign investment in property – which means that non-residents can get a mortgage for a home in Spain – but the products on offer may have more restrictions than those available for residents. It is good to know in advance your likely residential status before you choose a mortgage product, to make sure you get access to the best range of options.

Generally mortgages on second homes are considered more risky (and therefore offered at higher rates) than homes that will be a main residence. That’s because it’s assumed that customers in financial trouble will default on a holiday property before their main home. If you are looking to purchase a second home, you are likely to need a 30-40% deposit to secure a mortgage.

It’s slightly better news for people intending to reside in Spain, who should only need a deposit of approx 20%.- 30%

Whether you’re in the market for a first or second home, you will also need to pay fees and taxes, which can amount to a further 12-15%.

Here at Alta villas we are experts in our field  and try to make the whole buying process as easy and stress free as possible, so why not contact us today to speak to an adviser for friendly and expert advice and a wide array of services.



Call us at:

(0034) 965 796 311

Visit us :

Avda. Libertad 19, Local 12,

Javea, Alicante