Spanish Mortgages

The Spanish mortgage market is slightly different from the market in the UK; Spanish mortgages have been an extremely popular choice for many UK investors looking to step into the overseas property market.

When purchasing an overseas property in Spain, it is good advice to begin arranging your mortgage almost before you do anything else. This not only helps you pick a property to suit your budget, but can allow you time to pick the best mortgage option rather than rushing in to a decision that will last many years.

Finding your Spanish mortgage:
Spanish lenders do not always advertise their products as freely as the UK companies do. This means that for non Spanish residents, finding the best deal can be a tricky business.

You should pick a financial advisor or a mortgage broker who specialises in Spanish mortgages; this will give you the confidence that they will know the best deals and be able to oversee your purchase through the legal system.

The most popular mortgage product in Spain is the variable interest rate mortgage. The European Central Bank base rate is linked with the variable rate mortgage and the and generally the interest rates will fall or rise in line with the rate that is set.

Due to popular demand most lenders will also offer a fixed rate mortgage option. This gives you the advantage of knowing exactly what your monthly payments will be, however your payments will not rise and fall in line with the base rate.