When financing a Spanish property, most people naturally look at obtaining a Spanish mortgage for non residents. Spanish mortgages for residents are also common but still the majority of people purchasing property on the Costa del Sol live outside Spain. Both Spanish banks and UK banks are represented in Spain and are queuing up to lend money to foreign investors.

How to Obtain a 100% Spanish Mortgage

In actual fact getting a 100% Spanish mortgage is not easy and it is not common for a bank to lend a foreign home buyer 100 percent of the property value. However, what is more common is for the property, for which you require the mortgage, to be overvalued slightly when presenting the information to the lender, but undervalued at the time of purchase. Effectively what you end up with is a property that is valued at X and then sold at Y. If you buy a property for 200,000 € and the bank values the property at 290,000 € then you can borrow 70% or 203,000 € on the property. It’s not quite as insincere as it sounds and is common practice in Spain and the Costa del Sol even these days for more than just the purpose of borrowing money to buy a home.

How Much Can You Borrow?

Most branch managers can lend up to 180.000 € at their own discretion and credit checks are rarely taken on foreign applicants. A Spanish mortgage is normally given up to 70% of the value of the property you purchase. Nevertheless, if you purchase a new development in Spain or another off-plan property which is over 12 months away from completion, you are likely to get close to 100% mortgage as you can borrow up to 70% off the final valuation when the property has been constructed. If you already own a property in Spain with no mortgage you can use the equity in the property to get a 100% mortgage on your new property.

View more about Spanish mortgages, alternatively view this Spanish mortgage calculator.