How to get a mortgage in Spain: expert insights for EU Buyers
Financing your Spanish property the smart way
If you're dreaming of owning a home in Spain, chances are you've wondered about financing. Getting a mortgage in a foreign country can feel daunting, especially with different procedures, regulations, and expectations than you might be used to.
In this episode of Homely Property Chats, Magdalena and Bożena Brunowska - senior mortgage advisor at Mortgage Direct, one of Spain’s most established international mortgage brokers with over 750 mortgages arranged and nearly two decades of experience, discuss the intricacies of obtaining a mortgage in Spain for foreign buyers.
They cover the entire mortgage process, from pre-approval to completion, and highlight the importance of understanding the local market and financing options. Bożena shares her extensive experience and insights into common pitfalls, the impact of property valuation, and the challenges faced by EU buyers. The conversation emphasises the benefits of working with a mortgage broker versus going directly to banks, and concludes with practical advice for prospective buyers.
Watch the full interview on YouTube
Start with pre-approval — before viewing properties
According to Bożena, the biggest mistake foreign buyers make is starting the house hunt before checking how much they can borrow.
“You might spend a week viewing properties only to find out you can’t get the mortgage you need.”
She recommends starting the mortgage process at least three weeks before your planned trip to Spain. Pre-approval is based on your financial profile — not the property — which gives you the freedom to search with confidence.
How does the mortgage process work in Spain?
The process begins with affordability checks and submitting key documents to the right bank. Mortgage Direct works with several lenders and packages the application in a way that’s clear and complete for bank risk departments.
If approved, buyers can move forward with property searches. Once a property is chosen, the valuation process starts. The bank issues a binding offer (FAIN), followed by a notary appointment and a short cooling-off period. Completion typically takes 2–3 months, depending on the time of year.
Why it’s risky to go directly to Spanish banks
Many buyers approach local bank branches directly — and that’s where problems often begin. Local staff may not understand foreign financial documents or tax systems, and can give misleading answers based on assumptions.
“Twenty percent of my cases are clients who were misinformed by the bank and lost money.”
Bożena stressed that banks often decline applications weeks later due to documentation or income structure issues — even after giving initial verbal approval. A mortgage broker, on the other hand, can assess your eligibility quickly and thoroughly before anything is signed.
How foreign income and credit history affect approvals
Each country’s financial documentation varies, and some are more familiar to Spanish banks than others. Buyers from the UK, US, France or Germany typically experience smoother approvals due to long-established purchase histories.
But for emerging markets like Poland, approval is more nuanced. While four banks currently lend to Polish citizens, one requires official translations for all documentation. Mortgage Direct, being licensed by the Bank of Spain, can provide in-house translations for most cases.
“With Polish clients, banks don’t yet have the full history of mortgage behaviour, so they’re very cautious.”
Can non-EU buyers get financing?
Loan-to-value: how much can you borrow
In standard cases, EU buyers can borrow up to 70% of the property’s purchase price. However, the percentage varies based on income type, country of origin, credit history, and whether the buyer is self-employed.
For less familiar profiles, banks may reduce the loan-to-value ratio to 60%. Properties classified as rustic may also receive lower valuations or be limited to 50–60% financing.
Valuation is everything
One of the most crucial — and underestimated — steps in the Spanish mortgage process is property valuation. Bożena explained that regardless of a buyer’s financial profile, a low valuation can make or break the deal.
“The bank will lend you a percentage — so whether it’s 70 or 60 percent — of either the purchase price or the valuation, whichever is the lowest.”
She emphasised the importance of checking the valuation early in the process, ideally before instructing the bank.
“We say in early stages to the client, first let’s check, let’s calculate how much mortgage you can get, and once you find the property, we check the valuation. This is super important.”
In Spain, valuations are carried out by Bank of Spain-registered companies. Surveyors compare the property to at least six others in the local area to determine the market value. But if there are no similar properties nearby, they must use lower-value comparisons, which brings the risk of an under-valuation.
Since 2019, buyers have been allowed to order valuations independently — not just through the bank — and Bożena strongly advises this route.
Can you remortgage in Spain?
Unlike the UK or US, remortgaging is rarely available in Spain. Buyers looking to release equity after a cash purchase will struggle.
“We’ve asked the banks why they won’t consider remortgages. They just don’t want the complexity.”
If you’re unsure whether to buy in cash or with a loan, Bożena advises applying for a mortgage upfront — you can always repay it early.
Common mistakes foreign buyers make
After arranging hundreds of mortgages for international clients, Bożena shared the most common — and costly — mistakes foreign buyers tend to make when financing property in Spain.
1. Skipping pre-approval before property viewings
“Number one, not checking whether they can get the mortgage. That’s a huge issue… Clients are not checking what they can borrow.”
Many clients begin house hunting without confirming how much they can borrow. This leads to wasted time, unrealistic expectations, and in some cases, financial losses if a deposit is paid without secure financing. Bożena recommends starting the mortgage process at least three weeks before visiting Spain.
2. Going directly to a bank
“Very often the clients assume that the lending criteria will be more or less the same as lending criteria in their own country — and this is a massive issue.”
Local bank staff often misunderstand foreign income or tax documentation. In many cases, banks initially provide verbal approvals, only to decline the application later, once full underwriting begins.
3. Leaving too little time for document preparation
“Frequently we see contracts for two months and it might be okay if the client is organised with the documents… but on average, each client takes about two weeks to give us all the documents.”
Timeframes are often underestimated. Contracts that don’t align with bank processing times or client delays in paperwork submission can jeopardise the transaction.
4. Underestimating the valuation stage
“If the bank arranges the valuation, they appoint the valuation company randomly. We work directly with valuation companies to ensure it’s fair and reflects the market.”
The valuation determines how much the bank is willing to lend — based on the lower of the purchase price or the valuation itself. If this step is ignored or handled too late, deals fall through.
5. Not hiring a solicitor to verify the property
“Not consulting the solicitors, not instructing solicitors to check legality of the property… whether there is any outstanding inheritance tax issues, whether all the square meters are registered.”
Legal issues such as unregistered extensions, unpaid taxes, or inheritance complications can all affect the viability of the purchase. Bożena strongly recommends involving a solicitor early in the process to verify the property’s legal standing.
Learn about legal basics of property investing in Spain
Why work with Mortgage Direct?
Mortgage Direct has been helping international buyers since 2006. They’re fully regulated by the Bank of Spain, offer GDPR-compliant services, and speak 17 languages across their team.
“We’re not commission-driven. We look at the client’s profile and recommend the bank that best fits.”
With strong relationships across Spain’s top banks and access to trusted lawyers, valuers, and agents, they offer a complete and transparent service.
Final thoughts
The Spanish mortgage system can be complex, especially for international buyers. But with early preparation, trusted advisors, and proper financial documentation, it's entirely possible to finance your dream home in Valencia or beyond — even with unique circumstances.
At Homely Valencia, we’re here to connect you with professionals like Bożena and her team at Mortgage Direct, helping you move forward with clarity and peace of mind.
Ready to take the next step?