Spain Explained

Getting a mortgage in Spain step by step

Last updated on May 15th, 2020 at 03:08 pm.

You may not have sufficient capital to be able to pay for your property without some form of finance. In this case you might decide to apply for a Spanish mortgage. In this article we will go through the process of getting a mortgage in Spain.

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Changes in the process of getting a mortgage in Spain

There was a time when getting a mortgage in Spain was a relatively straightforward process. Before the economic turbulence of the past few years, most people could get one with a small deposit and easily borrow several times their earnings. Then the banks lifted up their drawbridges and potential borrowers were left high and dry.

In Spain, you can apply for a mortgage in much the same way as you would in most other countries. However, banks are no longer as keen to lend as they once were. You will be expected to be able to contribute a large deposit and they will want to see proof of income to ensure that you are in a position to pay your mortgage now and in the future.

This can be frustrating for those wishing to buy, but ultimately helps to ensure that once you have bought you are in a good position to pay your mortgage in Spain.

Also, a mortgage cannot be taken out for longer than 30 years and must be repaid by retirement age. New mortgages must be accompanied by a handwritten note signed by the client saying that he/she has been given details about the mortgage and understands the possible risks and content of the contract.

Things to take into account

If you are considering getting a mortgage in Spain you should:

  • Decide how much to ask for – you must take into account all the expenses involved in taking out the mortgage as well as how much you can afford monthly from your income for the interest
  • Compare quotes from different mortgage providers
  • Make sure you are familiar with all the terms and conditions of the mortgage provider you’ve chosen
  • Ask for a firm offer that comes with all the details and the complete contract.

Steps for getting a mortgage in Spain

  • After you have accepted the firm offer, the mortgage provider will send the documentation to the notary’s in order to prepare the Mortgage Deed
  • The notary then needs three daysprior to signing the Deed to request the nota simple
  • The signing of the Mortgage Deed will take place at the same time as the signing of the Title Deed
  • After the signing, the Notary will send an electronic version of the Title Deed and the Mortgage Deed to the Land Registry

If you do find at some point that you are able to pay off your mortgage then just be aware that you will need to inform the Land Registry too. If they are not informed it will still be down on your Deed that you owe money against your home. In order to make sure that the records are in order, a representative from your mortgage holding bank needs to sign the Mortgage Cancellation Deed at the Notary Office. This can then be sent to the Land Registry.

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As well as the additional cost you will incur by paying your mortgage there will also be an administrative cost applied by the mortgage lender. Make sure you are clear about how much this will be as it can amount to around 2% of the mortgage itself.

For more information about buying property in Spain you can download our free property buying handbook.

Moreover, if you have any queries regarding property purchase and management in Spain, you can fill out this form and we will offer you a free consultation with no obligation.

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andy gemmell

14 February, 2014 2:29 pm

How does SUBROGATION work
How does SUBROGATION work when taking over an exsisting mortgage and what fees do I have to pay ??


25 February, 2014 9:23 am

Dear Andy

Dear Andy

Thanks for your enquiry. My answer depends upon whether you are the buyer or the seller. In the case of the seller it can be particularly advantageous because you don't have to pay a cancellation fee for the mortgage  to the bank. From the buyer's point of view, although the costs are approximately the same, you don't have to have a valuation of the property, as that has been done already. You will also save on the cost of opening charges but will have other costs to pay as the bank will still want to check your financial status.  

I hope this helps.