Spanish Mortgage Brokers

The best range of Spanish mortgage solutions available for clients abroad

Welcome to Fluent Finance Abroad the Spanish Mortgage Specialists

We specialise in mortgages in Spain, finding for our clients the most appropriate form of finance to purchase their ideal property anywhere in mainland Spain and it’s Islands, whether it is a holiday home or purely for investment purposes.

‘An investment in knowledge pays the best interest.’ Benjamin Franklin

Our team of fully qualified Spanish Mortgage Consultants (ICIs) & UK qualified Mortgage Professionals (CeMap) will assist clients with the complex decision process from beginning to end. Fluent Finance Abroad offer Whole of Market mortgage options from every Spanish mortgage lender active in the Spanish mortgage market.

We find ourselves now almost a decade from when the financial credit crisis hit Spain hard but we are happy to report that Spanish mortgage lending is back to where it was in 2008 in terms of applications being approved. We have seen a huge reduction in lenders over the course of the last 8 years through mergers and acquisitions but given that interest rates in Europe are at historical lows (17th December 2019) we find that the mortgage deals available are extremely competitive and attractive. Spanish lenders have tightened up their lending rules since the credit crash and this means that obtaining mortgage approvals from the lenders is not as easy as it was in the boom years of 2002 – 2008.

This has also been affected with the introduction of the new mortgage rules and regulations which came into force on the 16th June 2019 under law 5/2019 which FFA are fully compliant with. It is essential that a Spanish mortgage application is perfectly presented to the lender / s otherwise you may find that the case will be declined immediately or delayed significantly due to lack of documentation or irrelevant information being provide to lenders.

FFA have been active in the Spanish mortgage market since 2006 and therefore we know exactly how best to approach the lenders meaning a potential mortgage application will have the best chance of A, getting approved at the right level & B, ensuring the application gets the very best terms and conditions that are available in the market place at any given moment in time.

The general rule of thumb is that Spanish lending institutions will offer a non-Spanish tax resident mortgage borrower a loan to value (LTV) range of between 50 – 70% depending on the fiscal strength of the application.

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The norm for Spanish tax residents is 80% is generally the maximum LTV available to more can be achieved if the application is a very strong one. Most lenders here in Spain advertise their maximum of 70% for non-residents but clients must be aware that lenders are not obliged to approve that level of lending.

From our experience, we often see clients being let down in terms of LTV by lenders they have approached direct and we then have to get involved to salvage the case and obtain the correct level of funding required. Not ideal in any scenario as any delays or unkept promises can put the whole property deal at risk (see video testimonial from our client Joseph https://youtu.be/Fjcwozmp1BE )

FFA have an official Decision in Principle service where we are able to pre-qualify a potential mortgage application from any client and we offer this service free of charge meaning that client knows exactly where they stand before they approach lenders or make offers on particular properties. This official DIP can be used if you wish to purchase a resale property or, if you are considering purchasing an off-plan unit, this DIP can give you the peace of mind that the level of lending you would require at the end of the construction process would be available if your personal circumstances remain the same as at the time of applying.

Interest rates are currently very interesting for Non Residents at the moment and can vary between 1.5% – 2.5% on a variable with Minimal Early Redemption Charges and 3% – 4% on a straight forward Fixed Rate deal with 2% Early Redemption Charge. Final rate offerings are always assessed on the merits of the applications but again, by speaking to one of our Spanish qualified advisers we will be able to inform you as to what rates you should expect to obtain.

One thing that clients should be very worried about is what additional mortgage-related products will a potential borrower offer me in order to discount the interest rate they may offer. The types of products which the lenders here like to sell alongside their mortgages are Life Insurance (which can be very expensive), Home Insurance, Credit Cards, Health or Private Medical Insurance and in some extreme cases, House Alarms.

All of these add on products have an adverse effect on the total cost of the lending (Annual Percentage Rate APR or TAE in Spanish) and great care should be taken when dealing direct with Spanish lenders as in some cases, the lender spring these upon potential borrowers well down the road of the purchase process. We at FFA have pre-approved Exclusive mortgage deals available to ensure no unnecessary additional mortgage products would have to be taken lowering the real cost of the mortgage lending. Some additional products may be required but they will be only the very minimal such as home insurance which can be useful to have with the lender.

For example – a variable rate mortgage of 100.000 € over 20 years @ a rate of 1.85% should cost 499 €, if you have to add life insurance which could easily cost between 50 & 100 € per month, the cost of the home insurance, a credit card & medical insurance you will find the real Annual Percentage Rate interest rate will much higher than the original 1.85% which was originally advertised or discussed.

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WHAT OUR CLIENTS SAY

We sold our house in Nerja very quickly and decided that we wanted a base near Marbella, with better access to amenities. Fairly soon, we found a desirable property in Calahonda, but it needed work done to it and, as is usual on these occasions, there was a hole in our available finances. Our estate agent put us in touch with Fluent Finance Abroad. Owing to our ages (my wife and I are over 70), although we had plenty of capital and collateral, our income is based partly on pensions and partly on earned income, but the latter was not eligible. Neither are we taxpayers in Spain, which made finding a bank willing to give us a mortgage that more difficult. Fluent Finance Abroad worked tirelessly to arrange a mortgage for us, eventually in our son’s name.
We now have a beautiful house in a very attractive suburb of Marbella and it certainly would not have become a reality without Fluent Finance Abroad’s efforts on our behalf. Well done the San Pedro team!
Christopher, Esther and Alexander Urquhart
March 2020
Hi Stuart, nice catching up with you yesterday.

Dawn and myself would just like to thank you for the help you gave us in securing a mortgage for our property in Spain, your handling of the business was first class and made everything move through smoothly and assured us that we had picked the right company to be represent by.

When we upgrade our property you can be assured that we will use you and also pass on your details to anyone that might be buying in Spain.

Thanks again

Rod & Dawn
November 2019
Many thanks to all involved and for all your help and professionalism.We would definitely recommend you all to anyone buying in Spain and shall do.
Kind regards

Marianne B
UK, June 2017

If you’ve never purchased an overseas property before, we understand the process can be pretty daunting. The good news is that at FFA, we can work independently to give you the most varied advice from the entire market, which is unbiased and tailored to suit your specific circumstances.

The process of getting a mortgage itself can be intimidating at first, but with our help, we can work through the necessary steps with you. The benefits of getting a mortgage through us include:

  • A no-obligation initial assessment with our team of UK qualified Financial Advisors (FPC) and mortgage professionals (CeMap) to find the right type of mortgage for your situation. Remember, we’re 100% independent and so are able to offer completely unbiased guidance
  • Support through the mortgage application process with one of our experts
  • Help and advice from those who know the area like the back of their hand

If you’re struggling with the complexities of applying for or obtaining a mortgage for Spanish property, simply contact our team who are on-hand to help.

First and foremost it’s important to note that there are currently no interest-only mortgages available in Spain.

Due to recent changes in law, it is advisable that you seek advice from industry professionals who have the most recent information, such as our team at FFA. The most recent figures suggest that the average mortgage has an interest rate of 2.53%, which has seen a very slight increase vs. last month. Other interesting statistics include:

  • 56% of mortgages in Spain have variable interest rates
  • 44% have fixed interest rates

To speak with a member of our team about the best mortgage deals available to you, don’t hesitate to give us a call today.

Well, the answer is most probably Yes, subject to the status of course!  As residential tourism is more common in Spain than other countries such as Germany or Britain because of the nice weather, Spanish banks will allow non-residents to contract a mortgage to buy a second home in Spain.

Spanish banks will insist that a potential borrower can show proof of income and savings to cover the deposit and costs associated with the purchase.

Applicants must have monthly disposable income available after taking into account their existing monthly significant expenses such as mortgages, loans, credit cards or school fees (for example), in their home country.

If these aforementioned costs plus the new Spanish mortgage don’t exceed approximately one-third of their net income, then an agreement in principle could be obtained.

A major benefit of taking a Spanish mortgage is that it is possible to arrange a full, economic mortgage approval before a property is located, so this provides the buyer with the assurance that their finances are secured before they even visit Spain.

This provides peace of mind to the buyer and is also a helpful negotiating tool as it means they are effectively as good as a cash buyer.

One notable thing to take into account is that Spanish banks will be more flexible in terms of income documentation required to be seen the less mortgage you require. For example, if you set yourself up as self-employed just 18 months ago, it would be probably wise not to insist on obtaining a maximum mortgage possible but rather lower your loan to value expectations a bit. The team at Fluent Finance Abroad can advise on the best course of action.

This depends upon the type of property being purchased.  If it is a residential/holiday home, then Spanish banks are currently offering non-residents mortgages of approximately 60% – 70% of the purchase price or valuation, whichever is the lower.  This means that the deposit required by the consumer would be 30% – 40%.

In the case of a rural property (rustica), this could be a lower loan to valuation as the property may valuer lower, so typically 50%-60%

In the case of a commercial venture or a construction mortgage, these would be considered on a case by case basis, usually with around 50% loan to value being the norm.

Costs to purchase must also be taken into account and these can vary depending upon the area in Spain where the buyer is purchasing, ranging from 13% – 15%.

In order to know how much deposit is required, the minimum amount that the buyer would need in today’s market therefore would be 40% plus 13%, so 53% of the purchase price.

This depends upon the type of property being purchased.  If it is a residential/holiday home, then Spanish banks are currently offering non-residents mortgages of approximately 60% – 70% of the purchase price or valuation, whichever is the lower.  This means that the deposit required by the consumer would be 30% – 40%.

In the case of a rural property (rustica), this could be a lower loan to valuation as the property may valuer lower, so typically 50%-60%

In the case of a commercial venture or a construction mortgage, these would be considered on a case by case basis, usually with around 50% loan to value being the norm.

Costs to purchase must also be taken into account and these can vary depending upon the area in Spain where the buyer is purchasing, ranging from 13% – 15%.

In order to know how much deposit is required, the minimum amount that the buyer would need in today’s market therefore would be 40% plus 13%, so 53% of the purchase price.

Interest rates are varied and can fluctuate greatly between lenders, if you require a fixed rate or a variable rate deal.

Generally, our white label exclusive variable mortgage deals start from 1.5% for non-resident mortgages and 2% for our exclusive fixed rate deals.

In Spain, lenders are very keen to highlight their headline rates which seems very attractive but we always focus on what the real cost of the lending is which is the annual percentage rate (APR) or Tasa Annual Equivalente (TAE) which is the headline interest rate plus all the hidden extras like mortgage arrangement fees, valuation costs, any additional products that need to be taken such as home insurance, life insurance, payment protection insurance (PPI) and even alarm systems.

For example, we have seen clients offered a headline rate of 2 fixed but the real cost of the mortgage (APR / TAE) was 4.5% when all the insurances where factored in.

The most important thing is that you either hunt for the very best deal yourself (if you have the time and the know how) ensuring you focus on the real cost of the lending or you entrust an expert company like Fluent Finance Abroad to secure you the very best mortgage deal around.

Spanish Mortgages Alternative Residential Lending Spain Insurance in Spain Spanish Lender / Client Conflict Resolutions
Mortgages for New Purchases Bridging / Short term lending Home Negative Equity
Re-Mortgage or Swapping Mortgage Providers Over 65’s Home in Plans Life Protection Interest Only Mortgages
Capital Raising or Equity Releases Self Certification Mortgages Car – Yacht Abusive Mortgage Clauses
Self Build mortgages Business Loans & Mortgages Spanish Pet Insurance
Commercial Mortgages Funeral & Repatriation Plans

Email info@fluentfinanceabroad.com or give us a call (+34) 952 85 36 47

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Our Services

Spanish Property Mortgage Services & Advice

Our aim is to find the most appropriate and cost effective property finance which work for the long term.

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Banking & Financial Advice Spain

FFA are in an ideal position to advise banking clients of which banks are really the safest and more client friendly.

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Bespoke Insurance Services

We aim to provide a number of insurances so that our clients can deal with all finance matters under one roof.

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Alternative Residential Lending

One of the most notable changes in Spain is the fact it is much harder to obtain a mortgage or finance than before.

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Our Main Areas Of Service

Spanish Mortgage Specialists

ANTI-BREXIT SPANISH MORTGAGE STRATEGY

If you are being put off buying a Spanish property because of the drop in the value of the pound you need to read our Anti-Brexit Spanish Mortgage Strategy carefully.

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Concerned about Clausula Suelos and the affect it may have?

Let Marc put your mind at rest by listening to the interview here.

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FLUENT FINANCE ABROAD

Our aim is to find the most appropriate and cost effective property finance which work for the long term.

Fluent Finance Abroad have been able to secure prefered lending loan to values as well as lower than the norm interest rate.

We cater for all nationalities wishing to purchase a property in Spain and have different Spanish mortgage solutions enabling us to do so.

“Being able to communicate well with lenders and clients is essential to this business.”

Marc Elliott is the British expat and brains behind Fluent Finance Abroad, the Spanish mortgage brokers based in San Pedro de Alcántara, Marbella.

Providing clients with the most appropriate form of finance to purchase their overseas dream home.
Marc – being half Spanish – has taken to life on the Costa del Sol like the proverbial duck to water… read more

Marc Damian Elliott de Lama

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