Which UK banks offer mortgages in Spain?

If you've decided to purchase a property in Spain, you're likely considering your options and investigating if the UK banks offer mortgages for overseas properties. 

Is it better to obtain a mortgage from the UK or a bank in Spain? Is the process more complex, or is it more beneficial to directly secure a loan in the currency you will purchase the property? 

Read on to understand the available options.

Is it possible to get a mortgage from a UK bank in Spain?

While it's not a common practice for every British bank, there are still a few options available if you wish to secure a mortgage from a UK bank to buy a property in Spain. 

Which UK banks offer mortgages for properties in Spain?

Obtaining a mortgage from a UK bank for a property in Spain can be challenging due to the limited options available.

HSBC provides international banking services that could facilitate securing a mortgage for a property in Spain, provided you meet the eligibility criteria. The loan will be granted in GBP, and you may be required to provide a more substantial deposit than usual to mitigate the lender's perceived risk.

Explore HSBC's overseas mortgage offerings to determine if it's the right choice for purchasing a property in Spain.

While not a UK bank, Santander, which operates in the UK, has a presence in Spain and offers Mundo Mortgage for non-residents wishing to purchase property in Spain. Besides flexibility with terms of up to 20 years and a minimum loan amount of 100,000 EUR, Santander accepts your documents in English.

What are the requirements set by UK banks for obtaining an overseas mortgage?

To access an international mortgage loan from a UK bank, you typically need to be over 18 and a resident of the UK.

Being a new or existing customer of the bank is usually required, along with maintaining a certain minimum balance in your accounts.

You'd need to provide identification, repayment records, a payment plan for any existing mortgage, proof of address, bank statements showing salary deposits, and employment verification. 

Keep in mind that additional documentation might be needed based on individual circumstances.

Alternatives to UK banks for citizens who want to access a mortgage in Spain

The limited options and potentially higher deposit requirements can make securing a mortgage from a UK bank challenging for those looking to buy property in Spain. 

Accessing a mortgage from a Spanish bank may be a better option as it provides a wider range of choices. 

Cajusur, Santander, Sabadell, CaixaBank, and Bankinter are among the top banks in Spain that offer mortgage services to UK citizens. 

Cajasur mortgages

Cajasur emerges as a favorable choice for UK citizens eyeing property in Costa del Sol or Andalusia, thanks to its competitive mortgage rates for non-residents. 

While they offer up to 70% financing, an opening fee between 0% to 1.5% may apply depending on the customer's profile, with properties requiring a minimum price of 120,000 EUR to qualify for a mortgage.

Santander mortgages

Santander, Spain's largest bank, can be an attractive option for UK citizens eyeing properties valued below 100,000 EUR. 

This is particularly the case for customers who have already secured a property and can provide the nota simple for loan processing.

Sabadell mortgages

Sabadell is one of the most competitive banks in Spain for non-residents, providing flexible mortgage conditions with terms ranging from 3 to 25 years and a starting loan amount of 70,000 EUR.

The lender offers a straightforward mortgage process that requires no translations for English documents, simplifying the application process for UK citizens.

Keep reading to discover a comparison between a mortgage from HSBC vs. Sabadell before deciding which option is more financially advantageous.

CaixaBank mortgages

CaixaBank mortgage is another competitive option in Spain, offering up to 1% interest rate reduction based on selected, maintained products. They now provide fixed-term rates as low as 3.06% with home insurance and security services.

Bankinter mortgages

Bankinter offers the convenience of remote banking and flexible repayment plans tailored to various financial needs, although it might fall short on competitive rates for long-term mortgages.

It's a viable option for UK buyers with a monthly income of at least 2,500 EUR.

Is there a way to simplify accessing a Spanish mortgage from the UK?

Securing a mortgage in Spain from the UK is now straightforward with Homevest's self-service platform, which is free of charge. This platform allows you to centralize your application, enabling you to request multiple offers from top-tier Spanish banks like CaixaBank, Sabadell, Santander, and Unicaja, all from the comfort of your UK home. 

If you need additional guidance, Homevest offers the option to have a dedicated mortgage broker. Opting for this service not only ensures expert support throughout your journey but also grants your application priority consideration from the banks.

The procedure to acquire a mortgage in Spain remains unchanged for UK residents, despite the altered EU membership status of the UK. 

Sources checked and used in November 2023:

1. HSBC overseas mortgage

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