In general the Spanish mortgage industry has become very sophisticated in recent years. Many lenders now offer a wide range of mortgage products to both resident and non resident clients. Employed and self employed are eligible.

Interest rates tend to be lower than in the UK and are linked to the Euribor. This is the European interbank interest rate which is the equivalent of the Bank Of England base rate.

To qualify for a non resident Spanish mortgage clients have to prove affordability at the outset. This is done by taking a percentage of the net monthly income of the applicant(s) which in Spain is 35% – 40%. This 35% – 40% figure must cover any long term debts in the UK and the Spanish mortgage payments.

Long term debts considered are UK mortgage payments or rent payments, personal loans (with more than 6 months to run), regular credit card payments and other regular monthly payments excluding council tax and utility bills.

Proof of income will be required and bank statements will be needed to prove any debts stated.