Applying for a Spanish mortgage as a couple? Here’s what you need to know

If you are a non-resident planning to purchase a property in Spain with your partner, knowing what to expect is essential.

Continue reading to understand the specifics when applying for a Spanish mortgage with a co-applicant and learn about the conditions you must meet to be eligible for financing.

What are the main requirements for applying for a mortgage in Spain as a non-resident?

The most important aspects to consider when applying for a mortgage in Spain as a non-resident include obtaining a Foreign Identity Number (NIE) and providing proof of income, credit history, and personal identification. 

Typically, non-residents are financed up to 70% of the property's value, so proof of the necessary down payment plus funds for taxes and fees is required. 

Also, it’s necessary to open a Spanish bank account for mortgage payments, whether from the bank where you want to take out a loan or another bank. 

Remember that you can benefit from interest rate discounts if you open an account at the lending bank. 

Is it easier to get a mortgage with a partner?

Yes, securing a mortgage can be more accessible when applying with a partner.

For married couples, applying together is generally preferable with most banks in Spain, as there is often a shared economy within marriages, which can be beneficial in the application process.

Read on to discover a step-by-step guide on securing a mortgage in Spain, covering requirements, interest rates, and essential information for non-resident buyers.

Which Spanish banks offer mortgages to non-residents?

CaixaBank, Sabadell, Santander, Bankinter, BBVA, Cajasur, Unicaja, and UCI are among the top banks in Spain that offer mortgage loans to non-residents interested in accessing financing.

What are the best Spanish mortgages for non-residents?

Finding the right loan for your needs is essential. With various options to choose from, you can find the one that best fits your financial situation.

CaixaBank mortgages 

HolaBank, for example, is a CaixaBank mortgage product specifically designed for non-residents. You can access a loan amount between 100,000 and 2,900,000 EUR, with a fixed or variable rate, depending on the currency in which you receive your income.

It's noteworthy that selecting multiple banking products, such as home insurance, alongside your loan, can qualify you for a discount of up to 1% on the interest rate. 

UCI mortgages 

UCI provides a grace period of up to 12 months, allowing you to pay just the interest, making the financial aspect manageable as you focus on your renovation project. 

If you want to secure a mortgage to purchase and renovate a home, UCI might be your option.

Sabadell mortgages 

Sabadell is one of the top banks in Spain for non-residents, offering flexible mortgages from 3 to 25 years, starting at 70,000 EUR. 

Sabadell mortgages are more affordable because the bank has removed administration and property registration fees. 

Santander mortgages 

Santander, the largest bank in Spain, hosts a dedicated program for non-residents named Mundo Mortgage. 

However, its offerings are generally pricier than other banks, but it could be an excellent choice for those seeking to acquire property valued below 100,000 EUR.

Cajasur mortgages 

Cajasur Bank is a top choice for citizens buying property in Costa del Sol or Andalusia due to its competitive mortgage rates for non-residents. 

Depending on the customer's profile, they offer up to 70% financing, with a possible opening fee of 0% to 1.5%.

BBVA mortgages 

BBVA offers a diverse spectrum of mortgage options, from 100,000 to 2,000,000 EUR, accommodating borrowers with varying financial needs. 

However, eligibility for a BBVA mortgage is restricted to those with income in euros. 

How much can I borrow for a Spanish mortgage with my partner?

Spanish banks usually offer non-resident mortgages covering up to 70% of the purchase price or the property's appraised value. 

This would imply that you and your partner must contribute a minimum of 30% of the property’s value in cash as a down payment. 

In addition, you’ll need to allocate additional funds to cover taxes, fees, and other related expenses involved in the property purchase. 

How is the income assessed when applying for a mortgage as a couple?

Lenders will assess your collective income, typically permitting a debt-to-income ratio between 35-40%. 

This implies that the sum of your mortgage payments and any other outstanding debts should not surpass 35% of your combined monthly income. 

For instance, with a combined monthly income of 5,000 EUR and a permitted debt-to-income ratio of 35%, your total monthly debt obligations should not exceed 1,750 EUR. Assuming no other debts, this would likely be the maximal monthly mortgage payment the lender would authorize.

What documents do I need to prepare when applying for a mortgage in Spain with my partner?

When applying for a mortgage in Spain with a co-applicant, you should expect to be assessed collectively for the mortgage.

Both you’ll need to prepare the following documents:

• Passport or ID
• NIE Number
• Proof of Income: recent pay slips (usually the last three months) and tax forms for the last two years
• Employment contract
• Credit report from your home country
• Bank statements from the last six months
• Proof of address (a recent utility bill or another document to prove your current address)

If your co-applicant is self-employed, read more details to discover the document checklist they need to prepare for the credit file.

Is there a way to simplify accessing a Spanish mortgage from abroad?

If you're considering applying for a mortgage from abroad, explore Homevest, a digital platform that simplifies the application process, enabling you to effortlessly receive mortgage offers from Spanish banks.

By submitting your mortgage documents a single time through this service, you gain access to top banks in Spain, including CaixaBank, Sabadell, Santander, and Unicaja. 

You can compare mortgage offers from the best Spanish banks and choose what’s best for your financial situation.

This was also Sandra’s case, who applied with her husband for a mortgage to buy a property in Madrid. 

After evaluating their options, the couple chose Sabadell for their mortgage, having considered offers from three different banks. The winning offer featured a competitive 1.8% interest rate for the first year, followed by 1.2% + EURIBOR, with no additional fees or early repayment penalties.

Discover Sandra's journey of buying a property from France to Spain and learn how Homevest provided her with options and support, leading to a successful outcome.

Frequently asked questions

What if I have a good credit score, but my partner doesn’t?

Spanish banks do not consider credit scores; instead, they require credit reports to analyze existing loans and calculate key performance indicators such as debt-to-income ratio and economic effort ratio.

If a customer has been late on payments before, it can make getting a mortgage more difficult.

What happens with a joint mortgage when you split up?

Joint ownership of the property and being equal guarantors for the mortgage implies that both parties are also equally liable for the payment of the mortgage. 

Parties can consider options such as selling the property and dividing proceeds, one buying the other out, maintaining joint ownership, or altering ownership proportions. 

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In summary, non-resident couples seeking a mortgage in Spain must fulfill specific conditions to obtain financing. 

Keep in mind the following takeaways when starting your home-buying journey with a co-applicant:

1. Secure an NIE and provide income proof, credit history, and ID when applying for a Spanish mortgage.
2. A Spanish bank account is required for mortgage payments, with possible rate discounts at the lending bank.
3. Applying with a partner may ease mortgage acquisition due to combined income, particularly if one is a Spanish resident or national.
4. Banks like CaixaBank and Sabadell offer diverse mortgage options to non-residents with different benefits and conditions.
5. Assessing income collectively and maintaining a debt-to-income ratio between 35-40% is crucial.
6. Non-residents usually receive up to 70% financing on property value, requiring at least a 30% down payment and extra funds for related costs.

Are you ready?

Take the next step - explore the offerings, understand your eligibility, and start your journey with Homevest today.

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.