Mortgages in Spain

With inflation around 3% - 3.5% in Spain, and base rates at around 2% the real cost of borrowing money in Spain has recently been zero or negative. Therefore, even if you have the cash to purchase your Spanish property outright there is a good argument to be made for using the bank's money to finance at least a part of your purchase and to put your own money to work earning a good return elsewhere.

In this golden scenario you borrow from the bank at next to nothing in real terms and if the value of property in Spain rises, as it has done almost every year in the past, you profit from the capital gains. In the meantime you have your own funds invested in other assets also earning you a return.

Having said that you should always borrow on the assumption that interest rates will also go up at some point and be sure that if they do you will be able to cope with the financial consequences. To put it another way don't borrow more than you can cope with if interest rate does rise.

If you need help with securing a mortgage in Spain we reccomend that you contact our mortgage partner at Crown FS, an independent mortgage broker who works with all of the major banks across Spain to help you find the best deal available. Simply fill in some details below and our mortgage partner will get back to you as soon as possible.

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