If you’re thinking about buying a property in Spain and need a mortgage to be able to do so, it’s important to remember that it’s easier for some foreign nationals than others to get their loan approved.
As a foreigner, getting a mortgage in Spain can be a lot more complicated than it is for Spaniards or those who have citizenship.
It can be even more difficult for non-residents who want to buy a holiday home here for example.
Factors such as the country you’re from or the currency you earn in can play a key role in the banks’ decision to grant a mortgage loan or not.
If the person applying for a mortgage here comes from a European Union country, they will have no problems and the banks to offer them a loan with more or less good conditions.
If they come from outside the EU, mortgages will be granted depending on the country and the currency in which they’re paid: if it is a devalued currency, or at risk, it becomes very complicated.
There are some currencies that are considered of minimal risk, including Swiss and Luxembourg francs, and the Czech, Danish and Swedish crowns. For this reason, the citizens of these countries are better seen by the banks and have a much easier time getting a mortgage in Spain
On the other hand, there are some currencies which are considered risky. Argentinean pesos as one of these for example and US dollars are a little more difficult for banks to accept, although it doesn’t mean Americans can’t get a mortgage in Spain.
If you want to get a non-resident mortgage in Spain, it’s important to remember that the conditions will be slightly worse than the mortgages offered to residents. This is because you are seen as a greater risk if you live abroad, and the banks cannot as easily get the money from you if you don’t pay up. These conditions may include higher interest rates, a maximum term and a starting fee.
According to Spanish property search giant Idealista, UK nationals are the largest foreign group applying for mortgages in Spain.
They are followed by Germans, then Americans, the Dutch, the French and the Irish.
Except for the British and the Americans, four out of the top six are from the EU which shows that they’re more likely to have their mortgages approved too.
If you are looking to buy a property in Spain and need a mortgage, email mark@vci-network.com for the latest criteria