Everything you need to know about Spanish mortgages and getting a mortgage in Spain
Start your spanish mortgage research early on to avoid paying through the nose later
If you are serious about buying a property in Spain, and need or want to take advantage of financing, you should start arranging your Spanish mortgage almost before you do anything else.
Leaving the financial side of your Spanish property purchase until the end does you no favours at all. If you leave it too late, and have to arrange your Spanish mortgage in a rush and under pressure, it is likely that you will end up with an expensive and inflexible loan. And never forget that mortgage terms often run for many years, so you may have to live with the consequences of you decision for years to come.
The advantages of arranging your Spanish mortgage at the start of your property search are as follows:
- It costs you nothing to start early
- Forward planning helps you clarify the advantages and disadvantages of taking out a mortgage in Spain and make the best decision as to how much, if at all, to borrow
- Arranging your Spanish mortgage in good time allows you to find the mortgage in Spain that best suits your requirements and avoid overpaying
- By taking steps to arrange your Spanish mortgage at the start you will have a better idea of how much you can spend on your Spanish property and can work out the likely future financial implications of your purchase
- Having your Spanish mortgage in place reduces the risks of you losing a Spanish property that it has cost you so much to find, and means one less source of anxiety and pressure when you are trying to close on a Spanish property
- An overview of mortgages in SpainJust like any advanced economy Spain has a developed mortgage market with numerous lenders offering a bewildering variety of Spanish mortgages.
- Comparing options: new mortgage or equity release back homeShould you use a Spanish mortgage, or a mortgage on your property at home? There are various good reasons for using a Spanish mortgage as opposed to a mortgage taken out on a property at home (in the UK, for example).
- Is a taking out a Spanish mortgage a good idea?For most people there are good reasons for financing at least a part of a property purchase with a mortgage.
- Mortgage brokers in SpainIf you need a mortgage in Spain you will want to get the ‘best’ mortgage for you; the mortgage that best suits your requirements, with the most flexibility, and at the lowest possible total cost over the lifetime of the mortgage (not just the up-front cost). In other words, the cheapest and most flexible Spanish mortgage that you can get, taking into account your financial circumstances.
- Overpaying for mortgage finance in SpainThe Spanish mortgage market can be confusing, and bewildering. There are lots of lenders offering many types of mortgages that are difficult to compare because they have different cost structures and terms.
- Problems paying your mortgage in SpainWhen things start to go wrong, a common reaction is to bury one’s head in the sand and hope the problem goes away. This would be a big mistake if you find that you are having problems paying the mortgage in Spain. The longer you ignore the problem, the more it is likely to cost you in the long run. So get working on an action plan immediately.
- Re-mortgaging in SpainTo remortgage in Spain, as anywhere, is to change the basic conditions of your mortgage. These can include the amount, period of loan, interest rate paid and the type of repayment schedule.
- Spanish mortgage costs explainedThe costs involved in getting a mortgage in Spain
- Valuations for a mortgage in Spain
Remember the following when using a mortgage in Spain to buy Spanish property:
- Your property in Spain is at risk if you do not keep up repayments on a mortgage secured on it
- Be sure you understand the repayments and can afford them before entering into any credit agreement
- The value of Spanish property can go down as well as up
Check out the Mortgage Questions & Answers section in the forum, share your knowledge and learn from others: Spanish mortgage questions