A Spanish Mortgage? – Be Prepared!

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I’m glad to say that the Spanish mortgage market for properties is healthier than it was a couple of years ago, however, the banks are still fairly conservative in their lending policies, so it’s still not quite like the ‘old days’ when obtaining a mortgage was apparently as easy as “1-2-3”.

With this in mind, I’d suggest that if you’re considering buying a property in Spain and you know that you will need some finance, then start investigating your mortgage options now, rather than leave it until you have found your ideal property. This is especially true now that there is something of a property shortage at the moment, which means that buyers are facing more competition. When you’re up against other buyers, time is often of the essence and the buyer who has all the financing sorted is likely to get a ‘Yes’ from the seller ahead of those purchasers who are waiting for bank approval.  It will also most likely cost you more, because when you’re in a hurry, you don’t have time to shop around for the best deals.

Do your research into a Spanish Mortgage

Create a budget based on all the costs involved in a Spanish property purchase, including taxes, notary and other extraneous costs. You’ll need to consider how much can you finance yourself and what is your minimum to maximum price range? From this you can evaluate the size of mortgage needed. Then it’s time to look at who is offering mortgages on Spanish properties and select the best deals.  When you’ve found some lenders that seem to work for your needs, start talking to them and getting the ball rolling. Doing it this way means that you will be ready to proceed from the day you find the property you want. Also, having done your research, you will have a much clearer view of whether, for example, the mortgage offered by a developer is actually a good deal or not, if you end up choosing a new development property that offers mortgages to buyers.

The Spanish Mortgage key points

To recap on what I’ve just said, here are the key advantages of pre-arranging a mortgage for a property in Spain:

  • Starting early gives you numerous advantages and costs you nothing
  • Advance research and planning helps you to be clear about the pros and cons of taking out a mortgage in Spain and how much you might need
  • The early bird avoids overpaying for a mortgage
  • During your property search you’ll no more or less exactly how much you have to spend
  • Searching for Spanish property is time consuming and costly, often requiring several visits to and for to Spain. With an advance mortgage in place, you can act quickly when you find the property you want and avoid disappointment and yet more house hunting.


If you’d like to discuss your property needs and would like some experienced guidance about a Spanish mortgage than please Contact Me for a ‘no obligations’ chat about what you’re looking for and the areas you’re interested in. I look forward to hearing from you.


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