GETTING FINANCE


Foreign buyers of property in Spain, have the possibility to take up a mortgage from most Spanish banks, foreign banks in Spain, overseas and offshore banks. The amount you can borrow depends on various factors such as your income, trade or profession, whether you’re an employee or self-employed, and whether you’re married, and if so, whether your partner works. Lenders may also have a maximum lending limit based on a percentage of your income, but this isn’t required by law. 

TAKING A MORTGAGE AT HOME OR ABROAD?

As a result of extensive research and over 25 years of experience on the coast, Bargain Andalucia are capable of presenting you with the most suitable mortgage-model, tailored for your exact needs, through one of our many collaborators in the Spanish banking sector.

Normally banks in Spain offer mortgages of up to 80% of the property price, but we can help you set up finance on higher percentages, even up to 100%, as we have exclusive contracts with a majority of the Spanish bank in regards of accessing their portfolios of distressed sales. To obtain a mortgage from a Spanish bank, you must usually provide proof of your monthly income and major outgoings.

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

Some bank offer very low interest rates, but maybe high opening fees and lower mortgage percentages, while other seem more expensive at first glance, but instead gives you the possibility to buy without having to take out a single euro from your pocket. In other words, the “perfect” loan depends on the individual client, which is why we advise you to to either contact us, or seek professional advice through a mortgage broker or bank before departure.

We highly recommended that you start the mortgage process prior to searching for your property. We can assist you with this, either by putting you in contact with banks directly, or by recommending a mortgage broker. Everything will be done in the comfort of your home where you will receive a detailed quotation of the costs and expenses associated with purchasing a Spanish property. By starting the process before even coming to Spain, you will benefit from receiving a “mortgage offer in principle” so you do not waste any time looking for a property you cannot afford.

To get an idea of how much it costs to buy your dream home on Costa del Sol, feel free to use our mortgage calculator found on this page. It will give you a good estimation of how much you will have to pay on a monthly basis, through the first year of a mortgage, depending on which lender you choose from the list. Further more it gives you a great chance to compare banks. Try it out.

MORTGAGE CALCULATOR

GET AN IDEA ABOUT HOW MUCH YOU CAN BUY FOR RIGHT HERE

 

This mortgage calculator assumes that the interest rate remains constant throughout the life of the mortgage, and shows an estimation of the monthly cost. We always recommend to contact us, one or more of the banks we collaborate with, in order to get an precise breakdown of a given mortgage.