Equity release

If you own a home in the UK and have equity in your main residence, it may be possible to raise up to 120% of the funds required for the purchase of your Spanish villa. This would be done by utilising a combination of equity release and a maximum Spanish mortgage. If your property in the UK has increased in value since you bought it, you may even be able to raise additional cash and still reduce your monthly payments.

Mortgage

If you don't want to do equity release, it is possible to secure a mortgage for your Spanish villa either through a Spanish or UK bank, such as Barclays, Halifax or Bank of Scotland. In our experience, it is more cost effective and easier to work with a local Spanish bank. Interest rates are lower here than they are in the UK as well. We have great contacts with many good local banks. Our clients have financed through Solbank in Salobrena, which has multilingual staff and is geared to the Northern European market. They have excellent conditions on mortgages and provide a very high level of customer service. Other banks our clients have used and been happy with include La Caixa, Bankinter and Caja del Ahorros del Mediterraneo. If you are interested in more details, please let us know and we will be happy to introduce you to the directors of these banks.

Generally mortgages from Spanish banks for non-residents have terms of up to 30 years. The actual term depends on your age as most loans must be repaid before reaching 70 or 75. The value of the mortgage granted is normally up to a maximum of 70% of the valuation price; however, up to 80% is possible in some cases. For non-residents, the banks are concerned with income levels more than on total outgoings and property held outside of Spain. Spanish lenders don't tend to take into consideration any potential future rental income that can be earned on the property you intend to purchase.