The Spanish Mortgage Guide
Your Whole of Market Mortgage Solution
Jason Callow Homes have partnered with Fluent Finance Abroad (FFA) one of the longest active mortgage brokerages in the Spanish mortgage market. Whether it be a main residence, holiday homes or simply for investment purposes, FFA want to make this the pleasant experience it should be. Our clients can contact FFA for a free initial consultation to start the exciting process of buying your dream home here in Spain.
The company is not tied to any particular lender meaning that they are able to offer a “whole of market” mortgage solution for any set of circumstances.
Fluent Finance are able to negotiate unique exclusive finance packages for JC Homes clients and they are confident that the rates incorporated will not be beaten by any other provider. Their team of consultants are committed to a code of practice that focusses on “best advice” and as a firm, FFA are regulated by the Bank of Spain under Spanish Mortgage law 05/2019.
An Introduction
Fluent Finance – 100% Independent
Fluent Finance pride themselves on being 100% independent when it comes to sourcing mortgage solutions for their clients, they can provide ‘whole of market’ advice. They are not restricted to whom they can approach in order to secure the ideal finance solutions for their clients.
Their aim is to find the most appropriate and cost-effective property finance which will work for the long term. It’s that simple!
Loan to Value
Many aspects of the mortgage marketplace have changed since the recent credit-crunch and Spain is no different. Spanish banks are once again lending to foreign nationals and the maximum loan to value (LTV) is 70%.
They can potentially finance deals above these levels by using a combination of products available, but this must be reviewed on a case-by-case basis and generally can only be obtained by clients with previous experience of home ownership in Spain.
Rates and Term
Currently Spanish banks are only able to provide mortgages on a capital repayment basis and generally over a 20 – 30 year term. Rates do vary but most mortgages aimed at non resident applicants are averaging 3,5% *Correct as of Feb 2025.
Many of their clients require mortgages to have a certain element of flexibility in order to pay down the mortgage without incurring heavy redemption penalties. FFA has access to a number of products, which allow clients to do this with a maximum charge of 0.5% of the amount repaid early. (E.g. €25.000 capital paid off = €175 administration fee to the lender).
How much can I borrow?
The minimum mortgage available is currently €40.000 and there is NO maximum mortgage limit which they can advise on. Lenders will require a credit report or certificate for all applicants from their country of residence.
They also offer mortgage and financial solutions in Spain for ‘offshore’ employees wishing to buy their dream home in the sun.
Jason Callow Homes provides this mortgage guide for information purposes only, it is not intended to replace professional advice and should be used just as a guide.
How long does it take to get a Spanish mortgage approval?
We can achieve official, written pre-approvals within 48 hours through to approximately 10 working days, depending on the lender.
For Spanish lenders to approve you for a mortgage, they primarily look at two different factors:
Loan-to-value ratio
For Spanish residents, lenders usually offer 80% of the purchase price, but the maximum loan for non-residents at the moment sits at 70%, with 60% being the most common awarded amount.
Your debt-to-income ratio
Debt and income are two of the most important elements when applying for a mortgage in Spain – it gives the bank information on how much you’re able to pay per month for a mortgage, and they’ll only allow your total debt to represent a certain percentage of your gross income.
For example, lenders will usually accept DTI of 30-35% or up to 40% in special circumstances.
Is there an upper age limit for securing a mortgage in Spain?
In Spain it’s much easier to secure a mortgage when approaching retirement age as the banks take into consideration your pension income when calculating any loan amount, allowing for loans that will run to a 75th birthday, or in some instances up to 80 years of age.
Jason Callow Homes provides this mortgage guide for information purposes only, it is not intended to replace professional advice and should be used just as a guide.
What documents will I need to supply?
Proof of identification – National identity document or passport.
Proof of income –
Salaried worker: 2 last pay slips, income statement last 2 years, letter from the company.
Self-employed: Accountant’s letter, income statement last 2 years, annual accounts last 2 years.
General – Proof of other sources of income, credit report, bank statement last 6 months, 2 last mortgage statements from principal address or lease contract.
Take a look at our buyer’s guide for the Costa del Sol
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