Applying for a Spanish mortgage
Once you have decided on a Spanish home you wish to purchase you will need to decide on how to finance it. If it is a mortgage you require, most Spanish banks will lend to foreigners providing they can prove their ability to repay. Prior to arranging a Spanish mortgage you will need to open a Spanish bank account. Other than that the requirements are similar to those in the UK. Banks will usually lend up to around 70% of the property value to foreigners and in some cases up to 80%. This does however depend on the bank, the bank manager and the property to be mortgaged. It is much easier to get a higher mortgage on a newer property, as banks tend to look for the current value.
Most Spanish banks also require you to take out a life insurance and most mortgages are repayable over 10-15 years, although this can be extended to up to 30 years depending on your age and circumstances. It pays to shop around however as interest rates and terms may vary from bank to bank.
Applying for a Spanish mortgage initially means visiting the bank and speaking to the bank manager, most of whom now speak English. Here below we provide a guideline of the documentation normally required when applying for a mortgage, although this may vary from bank to bank.