Let’s start with the obvious — yes, you can get a mortgage in Spain as a British citizen. No, it’s not exactly easy. And no, you probably won’t get the same deal a Spanish resident would.
But it’s doable. You just need to know what to expect.
Foreign buyers pay more. End of.
Residents in Spain can sometimes get 80% loan-to-value (LTV), low interest rates, better terms.
Non-residents? Think 60–70% LTV max. Higher interest. More paperwork. Less wiggle room.
And if you’re over 60? Some banks won’t even look at it unless you’ve got a hefty pension or large deposit.
Current interest rates (2025)
They’ve crept up since 2022 like everywhere else.
- Fixed rates: around 3.5% to 4.25% for non-residents.
- Variable: tied to Euribor (currently just over 3.6%) + a margin of 1%–1.5%.
So realistically, even the best deals are sitting at 4% to 5% APR once all costs are in.
It’s not outrageous. But it’s not what some Brits expect after years of UK tracker rates and “lifetime fixes” from 2018.
What you’ll need to show
This is where it gets sticky. Every bank wants slightly different things, but in general:
- Passport and NIE (foreign ID number)
- Proof of income — payslips, tax returns, pension letters
- Bank statements (usually 6–12 months)
- Credit report (they sometimes ask for UK version too)
- Pre-agreement on the property, or reservation contract
- Details of your debts, loans, monthly outgoings
They want to see you can afford the monthly payments comfortably — ideally your debt load (including the mortgage) should not exceed 30–35% of your net income.
Fees: more than you think
You’ll pay:
- Mortgage arrangement fee (typically 1%)
- Valuation fee (€300–€600 depending on size/location)
- Notary + registration fees for the mortgage deed (extra from the property one)
- Maybe an early repayment fee (check this)
And yes, this is on top of the normal 12–15% property purchase costs.
Timeline: it drags
It’s not fast. From mortgage application to approval to signing can take 6–10 weeks. Sometimes longer if the valuation hits a snag, or the underwriter wants extra proof of something weird from 2019.
Don’t plan around best case scenarios.
They’ll value the property — but don’t expect it to match the price
Spanish banks do their own valuation (tasación). If it comes back lower than what you’re paying, the LTV will be calculated on their number, not yours. Which means you might suddenly need a bigger deposit than planned.
Seen it happen. More than once.
Types of mortgage
- Fixed-rate — predictable, slightly higher, safer if you’re risk-averse.
- Variable — usually cheaper to start, but tied to Euribor, which can and does move.
- Mixed — fixed for 5–10 years, then variable.
If you’re not planning to live in the place full time, or plan to sell in a few years, some brokers push variable or mixed — but only if you know your exit plan.
Should you use a broker?
Up to you. Some people go direct to a Spanish bank. Others use an international broker who handles the paperwork, translates everything, and shops around.
If you want to browse rates, Idealista Hipotecas is decent. It shows rough terms and lets you compare lenders. You’ll still need to apply through a human being.
Just don’t click “accept” on anything without reading the fine print. And always check if the rate shown is TAE (APR with fees) or just TIN (nominal rate). Some brokers advertise the prettier one.
Things that catch people out
- They don’t convert income into euros early enough.
- They forget currency risk — if you earn in pounds, but mortgage is in euros, swings hurt.
- They get approved… but for less than they thought, and have no plan B.
- They don’t realise the seller wants full payment on signing, not “within 3 days.”
- They think mortgage pre-approval = mortgage contract. It’s not.
One more thing: life insurance
Some banks require you to take out a life insurance policy linked to the mortgage. Others heavily incentivise it by offering a better rate if you do.
It’s not always a bad deal, but check what you’re signing. You can sometimes cancel later — but not always without cost.
If it sounds heavy, that’s because it is.
Spain doesn’t give mortgages lightly to non-residents. But it also doesn’t shut the door. It just makes you prove everything three times, in two languages, with a signature on every page.
Do it right, and you get the keys. Do it wrong, and you get an email asking for a certified English-Spanish translation of a P60 from four years ago, before they’ll even look at your file again.
