Which UK Banks Offer Spanish Mortgages?

Are you a Brit looking to buy property in Spain? If you answered yes, you’re in good company.

Brits made up over 9% of foreigners buying properties in Spain in 2022, coming ahead of the French and Germans. Naturally, most of these were bought using mortgages, and you might have similar plans.

So, if you’re wondering which UK banks offer Spanish mortgages, this is the only guide you need. Read on for all the important details.

Which UK Banks Offer Spanish Mortgages?

To cut a long story short, not all British banks offer mortgages for property purchases in Spain. 

So, while the options are limited, you can still get a good offer from the banks mentioned below potentially.

1. HSBC

HSBC offers international banking, which means you can get a mortgage for a Spanish property provided you meet the required criteria. 

The loan amount will usually be disbursed in the currency required by HSBC, and the deposit and interest rates might be higher than usual.

2. Santander

This is not a home-grown bank in the UK, but Santander has operations in both the UK and Spain, which makes it a good contender for offering Spanish mortgages. 

It offers flexible terms and minimum loan amounts start from 100,000 Euros. 

Typical UK Bank Requirements For Getting A Spanish Mortgage

Apart from being over 18 years of age and a UK resident, the following are some of the requirements you might need to fulfil to get a Spanish (or any overseas) mortgage:

• Be an existing or new customer of the bank 
• Must maintain a minimum balance in the bank
• Provide identification records
• Provide proof of income
• employment verification

Apart from the above, banks may ask for other necessary documents on a case-to-case basis.

UK Bank Alternatives For Spanish Mortgages

You must’ve understood by now that getting a mortgage from a UK bank for a Spanish property purchase can limit your choices a bit. 

Not to mention the fact that you’ll need to work with potentially higher rates and deposit amounts in certain instances.

Considering all of the above factors, some UK residents opt for Spanish banks to get a mortgage for property purchases in Spain. 

We’ve already mentioned one of these, Santander, which has a presence in both the UK and Spain.

Here’s a list of some other Spanish banks that offer mortgages for property purchases in Spain.

1. Sabadell

Known as one of the most suitable Spanish banks for non-residents, Sabadell provides flexible mortgage terms from 3 to 25 years and loan amounts beginning with 70,000 Euros.

The mortgage process is simple, and documentation can be done in English, eliminating the need for translation services.

2. Cajasur

If you’re eyeing a property in Andalusia or Costa del Sol, then Cajasur is a potential bank to go with.

The bank offers very competitive rates for non-residents, with up to 70% financing and opening fees of 0% to 1.5%. 

The minimum price of the property in question should be 120,000 Euros. What’s more, you can even negotiate the interest rates!

3. Bankinter

For those UK residents who prefer remote banking that’s always available, Bankinter can be a good option. 

They provide flexible terms, tailored payment plans, and suitable options for UK residents with a monthly income of 2500 Euros minimum or UK equivalent. 

However, the only drawback is that their interest rates are not the most competitive arguably.

4. CaixaBank

Here, you can get a tailored mortgage product for UK buyers, known as the HolaBank Mortgage. 

CaixaBank is one of the best banks in Spain and offers very competitive rates. As a customer, you can go with a discounted instalment, and the interest rate can be reduced by up to 1% based on the products you’re going with.

Furthermore, if you take out a HolaBank mortgage, the bank covers the valuation fee for the property. 

Spanish Property Remortgaging

If you need to remortgage your Spanish property to get a lower interest rate and raise more funds, then there are two options you can choose within Spain. 

The first of these is that you can cancel your existing mortgage and take out a new one.  However, this can attract penal charges and extra fees, which makes it expensive when compared to transferring your current mortgage to a new lender. 

The second process involves transferring your mortgage to a new lender. This concept is new to the Spanish sector, and not all lenders might yet be on board with it. However, this option can offer lower interest rates. This is a growing trend. 

Frequently Asked Questions (FAQs)

1. Does Spain Have The Concept of Buy-to-Let Mortgages?

In general, Spanish residential mortgages do not prevent renting the property. Naturally, there’s no concept of a special buy-to-let mortgage in Spain, so you don’t have to worry about higher interest rates as you would in the UK for a buy-to-let mortgage.

2. What Is The Deposit Amount Needed For A Spanish Mortgage?

For UK residents looking to buy a property in Spain, the minimum deposit amount is usually 30% of the property’s value. 

3. Is It Possible To Get A Mortgage For A Spanish Golden Visa?

To get a Spanish Golden Visa, you need to invest at least 500,000 Euros in a property using your own funds. If the property value exceeds this amount, you might be considered for a mortgage.

4. What Is The Debt To Income Ratio For A Spanish Mortgage?

Spanish Banks usually need monthly debt repayments to be under 35% of your net income. However, this varies from bank to bank.

5. Is It Possible To Retire In Spain From The UK?

Yes, it is possible, but subject to certain conditions. Since the UK is no longer a part of the European Union, if you want to live in Spain for more than 90 days, you’ll need a valid residence permit. There might also be other conditions you need to fulfil to get permanent residence and retire in Spain.