Alison Lowther de Cotta, Independent Mortgage Consultant, the founder of Mortgage Matters Spain, answers questions about buying property with a mortgage in Spain.
How to get a mortgage to buy a house in Spain for a non-resident? What are the first steps?
The first steps to getting a mortgage in Spain is to approach the Spanish banks. You can either do this by talking to them directly or you can go to a mortgage broker. For example, our brokers have agreements with all of the major Spanish banks and our aim is the best deal for our non-resident clients. Usually broker has an initial discussion with the client to explain how mortgages work in Spain including general information on the fees and costs involved when buying, cash amount required by clients and how the banks calculate affordability and eligibility for a Spanish mortgage.
How much can I borrow in Spain?
The banks will lend up to a maximum of 70% LTV to non-resident clients. If the clients are non-European then the maximum is 60% LTV. Unfortunately this now applies in most cases to British clients also after Brexit.
What are the top regions with the biggest number of mortgages issued in Spain to non-residents?
The agreements that we have with the banks are valid for anywhere that clients buy in Spain. The most popular regions for purchasing are Costa Blanca, Costa de Sol, Murcia, Almeria, Canary Islands, Balearics. Although I do have clients buying in other regions such as Cadiz, Huelva, Barcelona and coast line etc.
What is the average mortgage interest rate?
An indication on a variable rate is between 1.8% and 2% and on a fixed rate an indication would be around 2.6%.
What is the average mortgage duration?
The banks will lend up to the age of 70 and usually a maximum of 20 years, although if clients have good pension plans then we can do a longer term.
What can you advise for a non-resident who decided to get a mortgage in Spain?
Make sure you understand how mortgages work in Spain and how the banks calculate affordability. It is different to your home country. If you are using a mortgage broker, make sure that they are fully qualified, regulated by the Bank of Spain and are fluent in Spanish.