At present there are many Banks and Financial Institutions throughout Europe, including the normal Spanish Banks, lending money for Residential and Commercial property purchase in Spain. All lenders will secure the loan on a property, either in your own country or on the Spanish property itself. Spanish banks and U.K. lenders arranging mortgages on Spanish property will lend a maximum of 70% of the purchase price to non-residents. Interest rates starting as low as 2.95% and Interest Only Mortgages and Capital and Interest Mortgages are available.

There are both advantages and disadvantages to arranging a mortgage in Spain instead of the U.K. With a Spanish mortgage you will incur higher set up charges compared to the U.K. and many of the current mortgage schemes that U.K. lenders enjoy are not yet available. Some of the advantages Spanish lenders have over their U.K. counterparts are lower interest rates and flexible lending criteria that are designed for quicker application and completion times. You will also find only a handful of U.K. lenders arranging mortgages directly on Spanish property in comparison to the Spanish Banking industry as a whole.

We highly recommended that you start the mortgage process prior to searching for your property. This can be arranged through a professional Mortgage Broker in the comfort of your home where you will receive a detailed quotation of the costs and expenses associated with purchasing a Spanish property. You will also be advised on all U.K. and Spanish lending options available to you, where your individual requirements will be met. Using a professional Mortgage Broker you will benefit from receiving a ‘mortgage offer in principle’ so you do not waste any time looking for a property you cannot afford.

Another important thing to consider prior to purchasing a property in Spain is Spanish Tax Laws. These vary from U.K. tax laws and inheritance tax is a subject that should be taken seriously when deciding whose name the property should be registered in! In all circumstances we highly recommend qualified legal advice before you sign anything.

Information provided by Casahipoteca S.L. your professional mortgage broker in Spain.

* Casahipoteca S.L.
* Managing director:Marcel Palm
* Servibox Buzon 770
* Ctra. Moraira – Teulada 32
* 03724 Moraira, Alicante
* Tel: +34 966 499 989
* Mob +34 647 878 906
* Email:

Further articles re purchasing in Spain

1. Rental income
2. Releasing Capital
3. Cheap Property – What’s the Catch?
4. Mortgage updates