Taking out a Spanish mortgage

WeCare Mortgages has extensive information about the mortgage possibilities in Spain. As a foreigner (non – resident) in Spain you can take out a mortgage to purchase a house.

Whether the Spanish banks will grant you a mortgage depends on a number of factors, including your financial situation.

Taking out a mortgage on your own and without assessment?

WeCare Mortgages developed the Mortgage Quick Scan in 2008. Our mortgage advisors will study the viability of your mortgage application in Spain and will offer you the best possible mortgage conditions for your situation. This assessment can be completed within 48 hours, provided we receive all the necessary information.

The Mortgage Quick Scan  saves you a lot of time and frustration in communicating directly with the bank. Perhaps your real estate agent has recommended a bank – but how do you distinguish a real good bank with great conditions? You need the expertise and experience of an expert to navigate this process.

On the page Apply for a mortgage you can read about all the steps of the Spanish mortgage process.

What are the general mortgage conditions in Spain?

  • Mortgage type. The mortgage type in Spain is standard a repayment mortgage. With this type of mortgage you will pay monthly interest and capital. Only on the outstanding mortgage amount you pay interest.
  • Mortgage term. The mortgage term in Spain can be up to 40 years maximum. This depends on the age of you and your partner. Spanish banks apply a final age of 75, this means that the mortgage must be repaid at the age of 75 years. For example: if you are 58 years the maximum term will be 17 years.
  • Interest. Mortgages in Spain are mainly based on a variable interest rate, the 12-month Euribor rate is used as an index. In the frequently asked questions FAQ it is explained what the Euribor is. The margin above the Euribor varies by bank.

Tip:  Do not be tempted by extremely low interest rate advertisements. These are often linked to expensive by-products which are not mentioned clearly beforehand. The degree of transparency in the financial sector in Spain is significantly less than in Northern European countries.

Here you can read about the maximum mortgage amount in Spain.

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Taking out a Spanish mortgage – construction mortgage

Banks in Spain can finance the purchase of the land as well as the construction costs. Not every bank can or wants to grant a construction mortgage. Generally banks finance up to 70% of the appraised value after construction. The value of the land and the construction costs as they appear in the project will be taken into account for purposes of valuation and financing.

When you are going to build a house (together with an architect and contractor) the mortgage type is always a construction mortgage. This means that the mortgage funds are in a construction depot and after each stage of construction a part of the building deposit will be released to pay for the construction costs. During construction a redemption period can be obtained. Once the construction is completed the mortgage type passes to a repayment mortgage where interest and capital is paid.

For more information about the conditions of a construction mortgage you can do a Mortgage Quick Scan in which we will inform you in detail.

Taking out a Spanish mortgage is done with the assistance of WeCare Mortgages!

What are the costs of taking out a Spanish mortgage?

Completing a Spanish mortgage has costs. Below we will give an overview of the total costs:

  • Mortgage deed tax (Actos Jurídicos Documentados): Spain has a duty to register a mortgage. This tax varies by region and is usually 1% of the mortgage amount to be registered.
  • Bank costs: Every bank charges you bank costs for completing a mortgage. The amount will be determined depending on the bank.
  • Notary and registration fees: Completing a Spanish mortgage will be officially sealed at the Spanish notary. This is done by signing the mortgage deed by the bank and by you as a customer. This document then needs to be inscribed at the Land Property Register (Registro de Propiedad).
  • Valuation costs: The valuation costs depend on the value of the property. Beforehand we can give you an estimation of this amount.

Want to know more? Please contact us.

Taking out a mortgage in Spain safely?

A simple and quick overview of your possibilities with the Mortgage Quick Scan
A clear step-by-step plan in advance making your mortgage in Spain easy and transparent
Our mortgage advisers accompany you to the notary

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