Mortgages

Mortgages (Hipotecas) are available in Spain for both residents and non-residents. Interest rates are currently around 3.6%-3.85% and Lemon Tree can assist in obtaining a mortgage decision subject to status. To help establish your mortgage status in Spain, please fill in the brief questionnaire below and you will be contacted shortly.

In Spain it is customary for a property to be held as security for a loan, i.e. the lender takes a charge on the property, which is recorded at the property registry. If a loan is obtained using a Spanish property as security additional fees and registration costs are payable to the Notary for registering the charge against the property. In this instance the fee calculated is included in the anticipated 11% costs of your purchase. To obtain a mortgage from a Spanish bank you must provide proof of your monthly income and all outgoings, such as mortgage payments, rents and other loans or commitments.

Note that if a property has a mortgage attached then it can also be passed on to you, the new owner, when that property is sold. This is subject to status and you will be liable for costs of approximately 1% of the mortgage as a transfer fee to the bank at the signing over of the property at the Notary's office.

Mortgages are granted on a percentage of a valuation. The maximum mortgage in Spain is usually around 70% of the bank valuation for non-residents and the normal term is 15-20 years. For residents the maximum can be 30 years, with a clause to state that the mortgage must be redeemed by the date of the applicant's 70th birthday.

Capital and interest repayment mortgages account for around 90% of mortgage loans, but interest only loans for up to a maximum of 10 years are available from a few lenders. So too are non-status (self-certified) loans, but only from one or two lenders, and with a maximum of 40%. Self-build, or constructor's loans are also available for those taking on a self-build project and who wish for capital to be advanced in stages throughout the build process.