Availability
Mortgages on Spanish properties are available for up to 70% of the value of your property.

Main lenders
Most Spanish banks (Caixa, Caja Mar, Unicaja) and Building Societies will offer mortgages for properties purchased on the Coast. Properties bought off plan can also be mortgaged, on completion. The bank will enter into agreement with the purchaser and the loan can be increased up to a maximum of 70% of the valuation of the completed property.It is important to remember
Spanish mortgages are written into the Escritura (title deed), thus linking them to the property and not to the person borrowing the money. Like most aspects of property purchase in Spain, your Abogado (Spanish lawyer) can obtain a mortgage for you. However he will probably be dealing with one bank and one sort of mortgage. We can help arrange your mortgage, choosing from a variety of lenders, after appraising your personal circumstances and applying to the appropriate lender.

Mortgage Costs
Depending on which lender has been selected to provide your mortgage:

Property valuation
The amount you can borrow will depend on the valuation of your property. Obviously, the higher the valuation, the more you can borrow, given the general guide that a non resident can borrow 60% - 70% of the valuation of a property, whilst for residents this figure can go up to 80% of the valuation. It is the job of the Tasador (valuer) to achieve the best possible valuation. There are independent Tasadors, but some banks will accept valuations from a variety of companies, others have their own Tasador, but the resulting valuations can vary considerably

Currency of mortgage
Mortgages are available in most major currencies. We strongly advise however, that you set up your mortgage in EUROS. This safeguards your risk of exposure to currency fluctuations. Your monthly repayments will also fluctuate if you borrow in a currency, which does not have a fixed value against the Euro, depending on whether the currency of your mortgage weakens or strengthens against the Euro. Some UK lenders will only lend in Pound Sterling, however and if your circumstances dictate that you use one of these lenders then we will advise you accordingly.

Interest rates
Interest rates for mortgages in Euro are based on EURIBOR (Euro Inter Bank Offered Rate). The lenders will normally charge EURIBOR + 1.25% but individual circumstances will determine the exact interest rate, which could be higher or lower. Fixed rate mortgages can be arranged at slightly higher rates of interest. It is common to find that some lenders offer a lower "Start up" mortgage.