That is why Lucas Fox only works with some of Spain’s leading mortgage brokers, who offer competitive mortgage packages to suit all requirements. Spain has a fairly developed mortgage market with numerous lenders offering what can often be a bewildering variety of packages. Our brokers’ special relationships with leading Spanish and international banks ensure that they are able to negotiate excellent conditions for clients and are able to obtain the very best mortgage deals from the best mortgage lenders, often unattainable elsewhere. They can also guide you through the mortgage set-up process step-by-step.

For most people there are many reasons for financing at least a part of a property purchase, especially given the current low interest rates

Our mortgage collaborators are also able to help you decide which kind of repayment model would work best – be it fixed, variable or a combination of the two. They are specialised in securing Spanish mortgages for non-residents and residents, obtaining the most competitive Spanish mortgage rates. They can also help you decide whether to take out a Spanish mortgage or remortgage an existing property in another country. Recently there has been a dramatic increase in the number of Spanish banks lending for property purchases, which has led to some very attractive conditions becoming available. Normally mortgages of up to 70% are available to non-residents and 80% to residents (i.e. those who pay their income taxes in Spain). For clients residing outside Europe, some banks prefer to lend less although this depends on the client’s profile. Interest rates are still at an all-time low and have remained low for the last 4 years. However, a future rate rise is possible and for this reason many clients prefer to have a fixed rate mortgage.

Lucas Fox mortgage brokers are continually evaluating the lending options available so will know which mortgage and which lender is right for buyers, avoiding the minefield of often confusing financing options.

After reviewing a buyer’s individual needs, our mortgage brokers approach their contacts directly, giving buyers the freedom and confidence to put in offers on properties.

Advantages of working with Lucas Fox's specialist mortgage brokers:

  • They give impartial mortgage advice as they are aligned to different lenders
  • They provide a highly personalised service, getting to know you and your short and long-term goals
  • They can act as a point of contact with your lender
  • They are always available to answer any queries during the mortgage application
  • They will ensure the process is as simple and quick as possible, maximising the possibility of a stress-free process

Mortgage Direct SL

Lucas Fox has been collaborating with Mortgage Direct for the last 10 years. They have been operating in Spain since 2006 and have cemented their place as the leading independent broker in Spain. They offer a premium brokerage service to clients of all nationalities and secure the best possible deals. They are completely independent and have a wealth of experience in a market where contacts are everything and premium service is key. Their UK mortgage advisers hold the CEMAP mortgage qualifications, regulated by the Financial Conduct Authority (FCA). Whilst the Spanish mortgage market is not regulated, they follow the UK's mortgage regulation procedures. Their advisers speak various languages and aim to answer all mortgage enquiries the same day and send quotes within 48 hours.

Ferco Gestión

Ferco Gestión has been working with Lucas Fox for around 5 years and has close contacts with all the major Spanish banks. Their core business is to negotiate and get the very best mortgage deal both for Spanish residents and non-residents. Having operated for more than 10 years, Ferco Gestión is made up of a team of fiscal and financial analysts as well as some of the industry's top lawyers. They can obtain mortgages for those looking for a primary residence, a second home or an investment property (whether as an individual or via a company). They can also obtain mortgages for those looking to rent out their property, mortgages for buyers looking to renovate a home or those who want to obtain a mortgage post-sale. In addition, they can offer financial packages for those who want to release some equity in an existing property.

Tips from the experts

Aside from the deposit, you will also need to have the cash for the fees and taxes. As a rule of thumb, excluding Madrid, we say to allow between 12% and 15% of the price depending on the region. For Madrid, we would say to allow around 10% as the stamp duty/property tax is lower, at 6%. In terms of how much you can borrow, the banks calculate around a third of your monthly net income and that has to be enough to cover your existing monthly debts, including any rent you might pay, plus the new Spanish mortgage payment. If you are intending to rent the property out, the bank will not take into account the future, potential rental income that may be received.

You need to allow around at least 6 to 8 weeks from start to finish to buy your property. The documents required are all standard, including proof of income, bank statements, an independent credit report, proof of funds and identification. We can assist you in opening a bank account too (prior to visiting Spain) with the bank the broker is going to recommend for the mortgage. For standard applications, our non-resident rates start from 2.05% fixed and from Euribor + 1.9% variable. Resident rates can be lower depending, again, on the client’s profile.

Katherine Walkerdine Mortgage Direct
Read a Q&A on the most frequently asked questions about obtaining a Spanish mortgage with Kevin Monger of Mortgage Direct

Ensure that you analyse the market beforehand. The Spanish property market can fluctuate so this needs to be taken into account. We will be able to find the most suitable mortgage for buyers whether it be fixed or variable with or without any linked products. Also ensure that you also read the small print in any mortgage contract especially if you are using a bank as sometimes a mortgage may seem advantageous at the start but can end up quite expensive at the end of the mortgage term. It's also very important to make sure that a mortgage can be cancelled without any extra costs or restrictions.

Everyone has a different financial profile, whether you are an investor, first time buyer or if you are purchasing a holiday home so it is essential that you seek the advice of an expert to ensure they match your profile with the right mortgage package.

Leandro Moretti Ferco Gestión

Start your Spanish mortgage research as early as possible. We advise clients to start investigating options available before they have even started their property search. If you leave it too late and have to arrange your Spanish mortgage in a rush it is likely that you will end up with an expensive and often inflexible loan. And never forget that mortgage terms often run for many years, so you may have to live with the consequences of your decision for years to come. Also, do let your real estate agent know if you have already secured a mortgage ahead of your property search as this could be advantageous if you are competing for the same property with another buyer.

Karen Storms Lucas Fox Head of Sales

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