Frequently Asked Questions

I am a British or Irish citizen, can I obtain a Spanish mortgage?

Yes, a mortgage can be obtained providing you can supply confirmation of income, i.e. P60 & 3 recent salary slips or accounts for the self employed. Please note that self certification mortgages are also available, suitable for clients who are unable to prove their incomes.

How much can I borrow?

The maximum mortgage is usually between 70 & 80% of the property price. This applies to house purchase & remortgages.

How long does it take to arrange a mortgage?

The whole process from start to finish will take between 4 -6 weeks

What costs are involved?

For purchases, IVA (VAT) of 7% is applicable. There are also Notary, Lawyer, Registration & Bank arrangement fees. Usually between 12% - 13% of the purchase price should be earmarked for costs. For remortgages/equity releases the costs are much lower.

Is it possible to obtain a mortgage on any type of property?

Mortgages are available to purchase residential properties such as apartments, villas or townhouses. You can obtain mortgages on new developments or on resale properties. Commercial mortgages are also available.

What is the maximum term the mortgage can be taken over?

The term of the mortgage can vary between 5 – 40 years depending upon the bank. CONTACT US & we will provide a specific quotation tailored to your requirements

Do I need an NIE number?

Yes. The NIE is short for Numero de Indentificacion de Extranjeros. This is a foreigner’s tax registration number and you are required to have a number if you have any financial dealings in Spain. You can apply for a mortgage without the number; however at completion the original NIE certificate would be required.

Lexus Mortgages & your lawyer will help you obtain the NIE Certificate through the foreigner’s department within the local police. The number will be used to complete your mortgage & pay the required taxes.

Do I need a deposit? What if I don’t have sufficient savings?

You would normally require a deposit of between 20 & 30%, plus costs. Delete remainder of this section However, Low Deposit mortgages are available on selected properties, view a selection at www.lexusestates.com. Normally with a 13% deposit of the purchase price, we can proceed.

Do I need to have any compulsory insurance with the lender?

Some Lenders will require buildings insurance with their mortgages. Life assurance is not a requirement though it is usually recommended. Lexus Mortgages can advise you on this.

How can I release the equity in my home?

If you are aged 65 or over, you can release a lump sum against your property with no monthly payments. Or, you can raise capital on your home for any purpose.

What if I want to build my own home?

Self Build mortgages are available, up to 60% of the projected value of the finished property. Funds are released at key stages of the construction.

I have a poor credit history; can I still arrange a Spanish mortgage?

Mortgages can still be arranged if you have experienced difficulties in your credit history. We have access to over 25 different Spanish banks & are able to offer various solutions for your circumstances.

Do I need a solicitor to assist me with the mortgage?

We always recommend that you use a solicitor when dealing with a property purchase in Spain. If however you are arranging a remortgage or equity release, a solicitor is not compulsory. You will however require an interpreter to assist you at the notary, Lexus Mortgages can of course arrange this for you.

How much does it cost to value the property?

The bank will always appoint a local surveying company to value the property & ensure that it is adequate security for the mortgage. The cost is typically €300.

Can I arrange my mortgage from the UK or Ireland?

Yes. You do not need to come to Spain while your mortgage is being arranged. Most people wish to be present at the signing of the deeds, but if this is not possible, your solicitor can be granted Power of Attorney to act on your behalf.

Can I fix the rate of my mortgage?

Fixed rate mortgages are now available with the Spanish Banks, contact us for the current rates.

Can I arrange my mortgage before I look at properties?

Yes, we are able to provide a decision in principle subject to you selecting a property.

How do I know if I earn enough to buy a property I like?

By using our mortgage calculator, you can gauge how much your payment will be before committing yourself. Contact us for a personalized quotation.

Can I get a Buy to Let mortgage?

Yes. There is no restriction on your letting your property once you buy it, there is no buy to let criteria in Spain.

What are the benefits of interest only compared to repayment mortgages?

The payments are less during the interest only period, which may help when you first purchase your property. It may also be beneficial in respect of Spanish Inheritance Tax and you should seek the advice of your solicitor to decide the best course of action for your circumstances.

Will I be notified of interest rate changes?

Yes. Your lender will give you notice of any fluctuations.

What is the age limit for repaying my mortgage?

This varies upon different lenders. The maximum age is usually 75, however some lenders offer mortgages to age 85.

Are there any early redemption penalties?

Early repayment penalties can be between 0% - 0.5% depending upon the lender. Some Spanish Banks will not charge the redemption penalty if you are purchasing another property & arrange the new mortgage through them. Top