Financing your property in Spain

Many buyers choose to take out a Spanish mortgage, the amount that can be borrowed on a mortgage here depends on two main factors:

  • The valuation on the property, this will be done using comparison values of properties in similar areas.
  • Monthly outgoings, banks in Spain take the view that your total credit outgoings should not exceed roughly a third of your total income. Therefore, your existing debts in your country plus new mortgage repayment should never exceed 30%/35% of your family net income. Credit report should be provided.

Normally, when applying for a Spanish mortgage a non-resident can finance up to 70% of the purchase price or bank valuation (the lowest factor) and a resident up to 80% of the purchase price or bank valuation (the lowest factor).

With regards to new builds Spanish banks will not lend on a property which is not built yet. Therefore, if purchasing a new build property a buyer would only be able to apply for a mortgage on the final payment which is normally 50% of the sale price, plus buying costs. The money required to pay the first 50% would need to come from another source.

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