Buying a property in Spain is an exciting prospect, whether you are looking for a holiday home on the Costa del Sol, an apartment in Barcelona, a villa in Ibiza or a permanent home in the Spanish sunshine.
However, arranging a Spanish mortgage can be more complicated than obtaining a mortgage in the UK, particularly if you are a British buyer living overseas or purchasing a second home.
One of the questions we are frequently asked is whether you can use a mortgage broker to arrange a Spanish mortgage and, more specifically, what Santander’s mortgage criteria are for people buying property in Spain.
In this guide, we explain how a specialist mortgage broker can help, what Santander may consider when assessing your application, how much you might be able to borrow and which types of property could be suitable for mortgage finance.
Can I use a mortgage broker to get a Spanish mortgage?
Yes. You can use a specialist mortgage broker to help arrange a mortgage to buy a property in Spain.
A broker who understands the Spanish mortgage market can help you establish how much you might be able to borrow, identify lenders that may consider your circumstances and guide you through the application process.
This can be particularly useful if you are a UK resident buying a Spanish holiday home, a non-resident purchasing an investment property or a self-employed borrower whose income needs a more detailed assessment.
A specialist broker can help with:
- Assessing your borrowing capacity: Reviewing your income, existing mortgage commitments, loans, assets and deposit.
- Finding suitable lenders: Identifying Spanish banks and specialist lenders whose criteria may suit your circumstances.
- Understanding deposit requirements: Explaining how much cash you may need towards the purchase price and buying costs.
- Preparing your application: Helping you organise payslips, tax returns, bank statements and other supporting documents.
- Considering the property: Establishing whether the property you want to purchase is likely to meet the lender’s requirements.
- Managing the process: Helping you understand the stages between an initial assessment, formal mortgage approval and completion.
Not every broker has access to every Spanish bank or mortgage product. It is therefore worth checking which lenders a broker can approach and whether they can help with your particular circumstances.
At Your Spanish Mortgage, we help buyers understand their financing options and connect with specialist contacts who can assist with Spanish property purchases.
What are Santander’s mortgage criteria for buying property in Spain?
Banco Santander offers a mortgage service for non-residents who want to purchase a second home in Spain. As with other Spanish lenders, Santander will need to assess both the borrower and the property before deciding whether to offer a mortgage.
1. Residency and the purpose of the property
Santander’s non-resident mortgage service is designed for people who live abroad and want to buy a second home in Spain.
This may be relevant if you live in the UK and want to purchase a holiday home or another property for personal use.
If you intend to move to Spain permanently, become Spanish tax resident or buy a property primarily for rental investment, you should establish which mortgage product and eligibility criteria apply to your circumstances.
2. Income and affordability
The bank will need to establish whether you can comfortably afford the mortgage repayments.
Your income, existing debts and other financial commitments are important considerations. Your employment circumstances and the stability of your income may also affect the assessment.
For example, an employed applicant might be asked to provide payslips, employment details and bank statements. A self-employed applicant may need to supply business accounts and tax returns to demonstrate sustainable earnings.
If you earn your income in pounds sterling but are borrowing in euros, exchange-rate movements can also affect the effective cost of your repayments.
3. Deposit and loan-to-value
The deposit you need will depend on the mortgage product, the property and your personal circumstances.
Santander’s published criteria for its standard fixed-rate mortgages in Spain state a maximum of 70% of the property’s appraised value for a second residence, with a maximum term of 25 years. These published figures are useful reference points, but they should not automatically be treated as a guaranteed offer under its separate non-resident mortgage service.
You should ask Santander or an appropriately connected mortgage specialist to confirm the applicable loan-to-value limit for your specific application.
Remember that the valuation may differ from the purchase price. The amount you can borrow may therefore be calculated using a lower figure.
4. Age and mortgage term
The mortgage term affects both your monthly repayments and the bank’s assessment of affordability.
Santander’s published standard fixed-rate mortgage terms specify a maximum of 25 years for a second residence. However, the term available to an individual applicant will depend on the product and the lender’s assessment.
Your age, retirement plans and expected income throughout the mortgage term may also be relevant.
5. Credit history and existing borrowing
Having an existing UK mortgage does not automatically prevent you from obtaining a mortgage in Spain.
However, Santander will need to understand your wider financial position, including your outstanding mortgages, personal loans, credit commitments and regular expenditure.
A clear picture of your finances helps the bank assess whether the proposed Spanish mortgage is affordable alongside your existing obligations.
Important: Santander’s final decision will depend on its underwriting assessment and the terms of the specific mortgage product. Meeting general criteria does not guarantee approval.
Does Santander have minimum or maximum Spanish mortgage loan sizes?
This is an important question, particularly if you are purchasing a lower-value apartment or a high-value villa.
Santander’s non-resident mortgage information does not clearly specify a universal minimum or maximum loan amount. It would therefore be unwise to assume that a particular borrowing figure applies to every applicant.
The amount you can borrow will depend on the product available, the property’s valuation, the bank’s lending limits and your affordability.
Is there a minimum mortgage amount?
Spanish mortgage brokers commonly work with minimum borrowing thresholds. At Your Spanish Mortgage, our general guidance is that Spanish mortgage borrowing typically starts at around €100,000, although this is not a universal minimum imposed by every lender.
If you need to borrow less than €100,000, it is worth checking whether Santander or another Spanish lender will consider the application and whether the costs involved make the mortgage worthwhile.
Is there a maximum mortgage amount?
There is no single maximum that should be assumed for every Spanish mortgage application.
The maximum amount available from Santander will depend on its applicable product limits, the valuation and the applicant’s financial circumstances.
For buyers purchasing expensive properties in areas such as Marbella, Mallorca or Ibiza, it is particularly important to establish the bank’s maximum exposure before committing to a purchase.
If you need a substantial mortgage, a specialist broker may be able to identify alternative lenders or specialist finance providers if a mainstream bank’s limits are unsuitable.
Santander has a private banking department, which means the bank caters to higher-net-worth clients buying expensive properties.
How much deposit will I need?
For planning purposes, non-resident buyers should commonly budget for a deposit of around 30% of the property’s purchase price, although the actual amount required will depend on the lender and mortgage product.
You should also allow for purchase taxes, legal fees, valuation costs and other transaction expenses. These costs are separate from your deposit and may need to be funded from your own resources.
A broker can help calculate the likely total cash requirement before you make an offer.
What types of property will Santander finance in Spain?
Santander’s non-resident mortgage service is intended for second-home purchases, and its website provides information about property valuation and new-build homes.
However, the fact that a property is in Spain does not automatically mean it will be acceptable security for a mortgage.
The bank will need to assess the property, its valuation and its suitability for the proposed lending.
Apartments and houses
Conventional residential apartments and houses are natural starting points when exploring a Spanish residential mortgage.
The property’s location, legal status, valuation and condition may all influence the lender’s decision.
If you are buying an apartment, the bank will also need to be satisfied with the relevant property documentation and the legal status of the home.
Villas and high-value properties
Santander may be worth exploring if you are buying a higher-value residential property, but you should not assume that every luxury villa will fit its lending criteria.
The valuation, location, property characteristics and amount of borrowing required will all matter.
For properties in the higher price brackets, it is sensible to establish the bank’s maximum loan size and the likely loan-to-value limit at an early stage.
New-build properties
Santander specifically advertises access to new-build property promotions through its Spanish mortgage service.
If you are buying a newly constructed apartment or villa, you should confirm the terms applicable to that development and whether the property can be financed under the mortgage product being considered.
New-build properties can be difficult to finance in Spain because lenders may be reluctant to offer longer mortgage terms. This means that if you agree to buy a new-build property and won’t get the keys for six or nine months, a mortgage lender may not offer a mortgage for that length of time.
Rustic properties and rural homes
Rural properties can require additional investigation. The legal classification of the land, planning permissions, registration and the status of any buildings can all affect mortgage eligibility.
Do not assume that Santander will finance a rustic property simply because it is being sold as a residential home. The specific property needs to be assessed.
Properties requiring renovation
If you are purchasing a property that needs substantial renovation, you should check whether the lender will accept its current condition and valuation.
A standard residential mortgage may not be appropriate for every project, particularly where structural work, changes of use or significant refurbishment are involved.
A specialist broker can help you investigate whether a conventional mortgage or a different financing arrangement is more suitable.
Should you use a broker or apply to Santander directly?
Applying directly to Santander may be a suitable option if its mortgage product fits your needs, you have a straightforward financial situation, and you are comfortable managing the application yourself.
Using a specialist mortgage broker may be more useful if you want to compare lenders, have complex income arrangements, are self-employed, need a large mortgage or are buying a property with unusual characteristics.
A broker can also help you understand the differences between lenders before you commit to a purchase.
The key point is that you should not choose a lender solely because it is a familiar name. The right mortgage depends on the amount you need to borrow, the property you want to buy and your financial circumstances.
How Your Spanish Mortgage can help
At Your Spanish Mortgage, we help UK buyers understand the Spanish mortgage market and explore financing options for property purchases throughout Spain.
Whether you are buying a holiday apartment, a family home, a villa or a higher-value property, understanding your borrowing position before making an offer can help you plan with greater confidence.
We can help you explore the relevant mortgage options, understand the deposit and documentation requirements, and identify the questions you need to ask before proceeding.
Start exploring your Spanish mortgage options
Buying abroad requires careful planning, particularly when arranging finance across different countries and currencies.
Your Spanish Mortgage can help you understand the potential mortgage options available for your circumstances and what you may need to prepare before purchasing.
Recent Comments