When buying a property off-plan normally you will pay between 20% –35% of the price during the period of construction. In Spain the finance for the property is initially obtained by the builders through a leading Spanish Bank, therefore when the property is completed you can then take over the mortgage from the Builder.

Whether buying off-plan or buying an existing property the Banks in Spain would normally require the usual information needed when applying for a mortgage, such as proof of income and assets. If the amount you wish to borrow is covered in the value of the property the process is quite straight-forward.

If you buy an existing property you have to bear in mind that Spanish Banks normally will only offer 80% mortgage of their valuation of the property, which is often less than the purchase price.

The current rate for a variable mortgage in Spain is somewhere between 3.75% - 4% however this is subject to change. As in UK there is also a fee involved to set up the mortgage. In most Spanish Banks this fee is around 1% .

For example,

A typical 100,000€ Spanish mortgage taken over a 20 year period with a 3.75% interest rate will cost approximately 590 € per month.