Types of Mortgages
in Spain

Obtaining a mortgage in Spain

Buying a property in Spain with a mortgage makes sense as there are various advantages to consider such as the possibility of reducing the wealth tax in various regions of Spain, maintaining liquidity, and diversifying in other areas with higher returns. 

Each client and mortgage application is unique as all applicants have different circumstances and priorities. We must consider age, nationality, tax residence and other factors to see which are the best options for each client. From personal mortgages for own investment and use to property development mortgages, the Lionsgate Capital team will help you throughout the process to ensure you always obtain the most suitable mortgage with the very best conditions, every time. 

Fixed rate vs. Variable rate

The most important point to take into account is that whereas in other countries you can usually change the interest rate every few years, when you mortgage in Spain the interest rate you choose at the beginning remains throughout the term of the mortgage, therefore it is very important to make the right decision from the beginning as you probably will not make any changes to the interest rate once the mortgage is in place.

Fixed rate mortgages

Fixed rate mortgages

These are those in which the interest rate does not vary throughout the repayment period of the mortgage. Consequently, the borrower always knows the monthly instalment to pay throughout this period.

Variable rate mortgages

Variable rate mortgages

These are mortgages that are linked to a variable indicator, normally the Euribor. The interest rate is usually revised from time to time, usually every 6 or 12 months, to adjust the instalment to the evolution of the reference rate.

Mixed-rate mortgages

Mixed-rate mortgages

Mixed-rate mortgages combine the variable interest rate referenced to the Euribor with the fixed rate. During a specific period (usually half of the amortization period), the fixed rate is applied and then the variable rate is applied afterwards.

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Different types of Mortgages in Spain

In Spain the types of mortgages on offer together with the rates and conditions vary between banks and change on a regular basis. Once our team understands your personal circumstances together with your preferences and priorities, we will make sure we obtain the very best interest rates on your behalf, at any given time.

Mortgages for Spanish tax residents

These are mortgages for Spanish tax residents. Most lenders offer up to 80% or in some cases even 90% loan to value.

Mortgages for non-Spanish tax residents

For tax residents in other countries, most lenders offer a maximum of 60% to 70% of the lower of the two values between the purchase price and the valuation. The criteria for mortgages for non-Spanish tax residents varies between banks and each client´s debt-to-income structure must be studied to know which banks to approach in order to obtain the best mortgage for each individual case.

Non-tax domiciled clients & yachties

If you work on yachts or do not have to declare tax on your income, we can help you find the best mortgage with a maximum finance of up to 60% of the lower of the two amounts between the purchase price and the valuation.

New-build construction mortgages

If you are looking to finance the build of your own home, you must have sufficient funds to purchase the plot, and the project and licenses must be in place.

In general terms, the maximum amount you can finance is up to 100% of the building costs, and a maximum of 60% to 70% of the total cost of the project, including the plot.

Equity release mortgages

Equity release is not common in Spain but can be obtained for renovations or to buy a new property in Spain. In order to release equity the property must be mortgage-free, please contact our team and we will study your individual case.

Lombard loans

We offer Lombard loans to our Private Banking clients, where an investment portfolio either in Spain or abroad is used as collateral to borrow funds in Spain. Lombard loans can also be used to increase a mortgage to minimize the impact of the wealth tax and maximize the return on investment.

Interest only mortgages

Interest-only mortgages are currently not available in Spain, however, for HNW and UHNW clients we work with private banks in other jurisdictions that offer interest only options to clients that can invest between 500.000€ and 1.000.000€ with them.

Re-mortgaging Re-financing

It is not common practice to remortgage in Spain. We can however review your current conditions and see if it is worth applying for a new mortgage to cancel the existing one, considering all costs involved.

Commercial mortgages

These are mortgages used to finance any type of business, such as a hotel or any other type of real estate business. In general terms, between 50 and 60% of the purchase price or the appraisal, whichever is lower. Whether you need financial support for a hotel, a property development or any other business, commercial mortgages vary depending on the purpose and the project.

How can a mortgage broker help lionsgate capital

How can a mortgage broker help you choose the best mortgage in Spain?

Buying a property in a foreign country can be a challenge, with language barriers and of course the very different financial process which exists in Spain compared to other countries. This is where Lionsgate Capital really come into their own, taking out the middleman and handling every aspect of your property purchase from understanding your priorities and analyzing your finances, to finding which bank will offer the best mortgage for your property purchase. From the very first contact the team are fully on your side right through to completion, helping you obtain the very best mortgage out of all the banks to maximize your investment.

how can we help you?

Contact Lionsgate Capital for an initial consultation

You are one step away from obtaining key information on how to optimize your property purchase in Spain with a mortgage. Arrange an appointment to find out how we can help you. We are your mortgage brokers.

Get in touch with our team of experts today!


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Lionsgate Capital is regulated by the Bank of Spain and is included in the Bank of Spain´s register of real estate credits intermediaries with ID Number D270.

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