English documents are accepted by most banks, eliminating the need for translation
English documents are accepted by most banks, eliminating the need for translation

How to get a mortgage in Spain from the UK: the process

When choosing a mortgage for purchasing property in Spain as a foreigner, consider interest rates, fees, and overall costs. Learn all the important information and steps involved in the process when considering increasing your property budget with a mortgage.

Delia Mihuț
Written by Delia Mihuț
Published at 2023-07-24T12:12:27Z
Last updated at 2024-01-10T14:52:02Z
Readtime 3 minutes

If you're planning to buy a property in Spain but need more financial flexibility, a mortgage loan can provide you with additional options.

In this article, we'll show you how to get a mortgage in Spain from the UK and guide you through the necessary steps. 

Let’s get started!

What is the process of getting a mortgage in Spain while living in the UK?

First and foremost, it's important to clarify that the process of obtaining a mortgage is the same for citizens of the UK, even though the country is no longer a part of the EU.

Here are a few steps you need to take in your process of buying a house in Spain:

#1. Research lenders

Begin by exploring different lenders that offer mortgages in Spain for UK buyers.

When choosing a mortgage for purchasing property in Spain as a foreigner, consider interest rates, fees, and overall costs. Some lenders offer lower interest rates but higher fees, impacting the total mortgage expense.

#2. Collect documents

Gather all the necessary documentation, such as identification, income proof, bank statements, and credit history. The lender will require these documents during the application process. 

A solution that can optimize your time is Homevest, a digital service that centralizes your credit file in one place for you to request mortgage offers from multiple banks.

#3. Pre-approval application

Submit a pre-approval application to the chosen lenders. They will evaluate your financial situation and determine the maximum amount they will lend you. 

It's important to note that obtaining a pre-approval letter generally does not guarantee that you will secure a loan from the lender.

#4. Property valuation

Property valuation is how experts determine how much a property is worth. They look at different things about the property, like its size, location, and condition, to decide how much money it could be sold for.

This property valuation will help determine the loan amount you can secure.

#5. Mortgage application and approval

After you have found a property and agreed to the terms, you can start the official process of applying for a mortgage. The lender will carefully go through your application, check your credit history, and review the documents related to the property. 

If everything meets their requirements, they will provide you with a formal offer for the mortgage.

#6. Notary and legal procedures

Engage a Spanish notary and legal professionals to handle the necessary legal procedures, including the drafting and signing the mortgage deed.

#7. Closing and disbursement

Once all the legalities are in order, schedule the closing meeting, where you will sign the mortgage contract and pay any associated fees. 

The lender will transfer the loan amount to the seller, and you will officially become the property owner.

What mortgage can you access in Spain with income from the UK?

Spanish banks offer three types of mortgages to UK citizens interested in obtaining a loan: fixed interest rate loanvariable interest rate loan, and mixed interest rate loan.

Before deciding on the type of interest rate you choose, evaluate your financial situation and determine your level of risk tolerance. 

If you’re choosing a variable interest rateexpect your monthly rate to increase as it is closely tied to the evolution of the Euribor. On the other hand, a fixed-rate mortgage maintains a constant rate throughout the term, providing stability but usually at a higher rate. 

Regardless of your choice, remember that a mortgage in Spain is only granted in euros, so you will also need to pay attention to currency fluctuations.

Which Spanish banks offer mortgages to UK citizens?

Santander, Sabadell, Caixa, Cajasur, and Bankinter are among the best Spanish banks that offer mortgages to citizens who receive their income in GBP. 

Here are the main key features of the five banks mentioned in this article:

Lender Suitable for Pro Con
Santander UK citizens seeking a mortgage from the largest bank in Spain Mundo Mortgage provides flexibility with fixed and variable rate options, with terms of up to 20 years The debt-to-income ratio should stay below 35%, possibly excluding individuals with the high level of existing debt
Sabadell UK citizens looking for various mortgage options with competitive rates and favorable terms The application process is quick and straightforward, without any administration or property registration fees The maximum loan-to-value ratio for non-residents is 70%
Caixa UK citizens who want to apply online for a variable mortgage Offers mortgages ranging between 100.000 to 2.900.000 EUR The current 35% fixed debt ratio may restrict eligibility for borrowers, especially those with lower incomes
Cajasur UK citizens interested in buying a property in Costa del Sol or Andalusia Offers mortgages ranging between 80.000 and 1.000.000 EUR at an initial rate of 2% A potential opening fee of up to 1.5% can raise the overall cost of obtaining a mortgage
Bankinter UK citizens with a monthly income of at least 2.500 EUR Full remote banking that can remain close at hand when you are not in Spain Fixed-rate mortgages are only available to borrowers with income in euros

Continue reading to discover the documents checklist for a non-resident to apply for a Spanish mortgage. The good news is that you don’t need to translate your documents; most banks accept English papers.

Is there an easy option to access a mortgage in Spain from the UK?

Homevest is a digital platform for cross-border mortgages simplifying the process of applying for and receiving mortgage offers from local banks.

Through the Homevest platform, you can easily upload and consolidate all the necessary documents for a mortgage application with an employment contract from the UK. These documents undergo a verification process, and if they meet the required criteria, they are forwarded to eligible banks in Spain.

You have the convenience of managing and tracking the progress of your application directly from your Homevest account. 

What are the benefits of Homevest?

  • The process is simple and fast - Homevest gives you a mortgage simulation in 24 hours
  • You centralize the documents for your credit file and submit them to Spanish banks in one go
  • You receive mortgage offers and choose the one that best suits your situation
  • You can benefit from a premium service, which includes a dedicated mortgage broker for your case, priority treatment from the banks, and legal consultation to ensure everything goes according to plan. This service is subject to a 1% success fee.

Tips to consider when planning to buy a house in Spain with a mortgage

  1. Conduct thorough research to find a property that meets all of your needs. Idealista.comFotocasa.esThinkSPAIN, and Savills are some property websites that can assist you in your search.
  2. Use a mortgage comparison tool to analyze all the available options for your financial situation. Homevest can assist you in comparing the mortgage loans available in Spain and accelerate the application process directly from the UK.
  3. Make sure you use a financial service to avoid losing money on the exchange rate. Wise, for instance, can help you save on the exchange rate, as mortgage loans in Spain are granted only in euros.
  4. Apply in advance at the Spanish Consulate in the UK for the NIE number to ensure that you obtain the Spanish financial number on time (it usually takes around 3 weeks to receive it)
  5. Be careful that your decision aligns with your values and financial situation.

Sources used and checked in July 2023:

  1. Embassy of Spain in the UK
  2. P60

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.

No comments
Leave a comment
Related articles
Access banking offers with Homevest

What deposit do you have to pay to buy a house in Spain from the UK?

In addition to the deposit, you should expect to pay taxes associated with your purchase. Explore insights on the deposit amounts and considerations when purchasing a property in Spain as a UK resident.

If you wish to compare mortgages in Spain while in the UK, Homevest can easily assist you

What are the best Spanish mortgages for UK residents?

Regardless of the bank you choose for your mortgage, make sure you have your P60 form ready. This tax document is essential for assessing loan offers, as it captures details about your income, taxes, and contributions from the prior year. Keep reading to learn about the best Spanish banks for mortgages for UK buyers.

A mortgage broker can get you better deals from banks

Mortgage rates in Spain for non-residents [January 2024]

When comparing mortgages for a property in Spain, staying updated on the latest market deals can help you to negotiate effectively. Negotiation is standard practice, and this is where Homevest excels, helping you secure the most advantageous deal.

A platform for mortgages

Homevest is a pan-European mortgage and homebuying platform. We strive to bring the mortgages in the 21st century.

Where will you buy?