If you dream of starting a new life on the seacoast, but do not have the opportunity to buy a house for yourself as soon as possible – there is a solution! Property in Spain can be mortgaged, which will allow you to pay a certain amount, dividing the rest of it over 20-30 years paid monthly. This is a great way to quickly get a house for relocation to Spain, a vacation or investment in order to make money from renting it out.

Spanish legislation has many subtleties regarding mortgages and different conditions for residents and non-residents of the country. To deal with mortgages for Spanish property we recommend that you carefully read this article. Here we briefly explain the main points that can help you get your dream property in Spain.

What types of mortgage for property in Spain exist?

Mortgage for property in Spain may differ in conditions depending on your age, social status, type of your activity and a number of other factors. The most common types of mortgages are:

Mortgage loan for non-residents of Spain. Depending on the bank, the loan amount can be between 50-60% of the cadastral value of your property.
Mortgage for residents. If you pay taxes to the local budget and have Spanish citizenship, you can count on a loan up to 70% of the property value.
Retirement interest-only mortgage (RIO). Spanish legislation allows even elders without official job to take out a mortgage loan. In this case, the bank will need a guarantor, who, in turn, may be a co-owner of the property and claim the inheritance.
Construction mortgage. A loan with many nuances that you need to check with an agent before choosing Can offer from 60% to 70% of the amount for the purchase of land and the construction of a new house.
Commercial mortgage. It is necessary for those who are going to buy real estate for commercial use. The maximum coverage is 50% of the assessed value of your commercial property. For its registration, a number of documents confirming your entrepreneurial activity are required.

Percentage and terms of mortgages for Spanish property

A mortgage loan in Spain may have different conditions depending on the bank to which you applied. The average Spanish mortgage rate is between 2.8% and 3.2% as of 2022. Depending on your needs, you can get a loan for a period of 5 to 25-30 years. We do not recommend taking a loan for the shortest possible time, because in case of any violation of the deadlines, you will spoil your credit history and may receive sanctions in the form of penalties and fines.

Can I get a mortgage for Spanish property with a bad credit history?

To get mortgage to buy Spanish property with a bad credit history, it is desirable to be a resident of this country. Each lender wants to be sure that all investments will pay off in full with interest. Bad credit history is a sign that the mortgage may not be paid on time. To be make your chances higher to find the right bank without being denied a mortgage, make sure that you have not had problems with financial institutions in the last 6 years (and not only in Spain).

If one or two banks refused you – do not despair! Continue to apply to banks with conditions that suit you and you may get a positive response from one of them.

Buying property in Spain: Mortgage or no mortgage – it is your choice to make

Before buying a property in Spain, mortgage needs clarifying as to its type, interests, terms and other features. Carefully study the offers on the market and make the choice yourself, or contact a broker or real estate company. In Spain, you can get both paid advice and free assistance if you apply for a loan for a property offered to you by a developer or a real estate company. Whether you do it yourself or save time by contacting professionals, it is up to you!