Mortgage in Spain as a UK citizen: what are your options?

Dreaming of owning a property in Spain?

You’re not alone. Many UK citizens share this dream but often wonder about the practicality of securing a mortgage there.

Whether you’re eyeing a vacation retreat or a new home under the Spanish sun, let’s discover how to make your property aspirations in Spain come true.

What are the rules for UK citizens buying property in Spain after Brexit?

UK citizens can still buy properties in Spain and obtain mortgage loans, much like before, as long as they meet the bank’s criteria and have a solid financial standing for loan repayments.

However, post-Brexit, British nationals should be aware of two significant shifts:

• their stay in Spain is now limited to 90 days without a visa
• opting to rent out their property in Spain may attract higher taxes than those imposed on EU residents

What deposit do you have to pay to buy a house in Spain from the UK?

As a non-resident, you must pay a larger down payment, usually a minimum of 30% of the property’s value. Additionally, be mindful of related taxes, which typically range from 4-11%, depending on the property’s location.

What mortgage options are available in Spain for UK buyers?

UK citizens looking to obtain a mortgage based on GBP income have options with Sabadell, Santander, Caixabank, Cajasur, and Bankinter.

Each bank offers unique benefits for different financial situations:

• Cajasur: ideal for those purchasing property in Malaga, Marbella, or any city on the Costa del Sol
• CaixaBank: provides appealing fixed-term offers for those wanting peace of mind amid fluctuating interest rates
• Santander: offers private banking, making it a viable option for wealthy individuals
• Sabadell: great flexibility and the best competitive offers
• Bankinter: ideal for those with a monthly income of at least 2,500 EUR, especially those leaning towards a variable mortgage

How do you apply for a mortgage in Spain from the UK?

1. Begin by requesting your NIE number, a necessary document for property and mortgage transactions in Spain.
2. Organize and centralize all necessary documents for the mortgage application.
3. Obtain an initial mortgage offer to understand your borrowing capacity.
4. Have the property in Spain appraised as part of the mortgage process.
5. Receive the FEIN (European Standardized Information Sheet), followed by the formal mortgage offer from the bank.
6. Complete the process by signing the mortgage agreement.
7. Get your keys to your new property in Spain.

Is there a way to simplify accessing a Spanish mortgage from the UK?

Homevest is a quick and easy solution that matches you with banks that suit your needs. You can apply for a mortgage with Homevest and have access to top non-resident banks on one platform.

This digital platform allows you to receive multiple offers and compare them according to your preferences.

You’ll have a dedicated mortgage broker who will ensure that your mortgage is ready in time for signing.

Frequently asked questions

1. Can I have a co-applicant on my mortgage loan?Yes, applying for a mortgage loan with a co-applicant is often more feasible.

In Spain, most banks favor joint applications by married couples, as the shared financial resources within a marriage can strengthen the application.

2. What documents do UK citizens need to apply for a mortgage in Spain?UK citizens should have their tax forms and credit reports ready for the bank’s initial evaluation.

The application must include a national ID, proof of employment, recent payslips, bank statements, and evidence of deposit. Banks highly favor stable employment.

3. How do I obtain the NIE number?You can apply for the Foreigner Identification Number (NIE) at the Spanish Consulate in London, or appoint a proxy in Spain to apply on your behalf.

4. What are the taxes involved in buying a property in Spain with a mortgage?When buying property in Spain with a mortgage, expect additional costs like Property Transfer Tax, notary and registration fees, agency and valuation charges, legal fees, and insurance. These can increase the property’s price by 10% to 15%, and are not covered by mortgage financing.