If you do not have a residence in Spain, how will your mortgage be?

If you do not have a residence in Spain, how will your mortgage be?
If you do not have a residence in Spain, how will your mortgage be?

If you do not have a residence in Spain, how will your mortgage be?

Whether you are Spanish and live abroad or if you are a foreigner, these are the key elements to take into account when requesting a loan to buy a home

Being a resident abroad and considering buying a home in Spain does not have to become an impossible mission. Although there are entities that do not grant mortgage loans to citizens who do not have a residence in the national territory, many do so without major problems. What it is worth knowing, however, are the peculiarities that characterize mortgages for non-residents, whether they are of Spanish or foreign nationality. In this way, the experts consulted assure, bad surprises can be avoided.

you will pay more

One of the most important elements that distinguish mortgages aimed at residents from those granted to non-residents is the so-called pricing, that is, the interest rate that is applied to the share of borrowed capital that must be repaid each month. In the case of non-residents it is generally higher than for residents. The fixed rate –the most common in these cases– “is around 2.5% over 20 years”, says the director of the financial intermediation company Tu Hipotecaria Solution, Ricardo Gulias, and in the variable rate, the fixed part that is added to the Euribor “is between 1.1% and 1.25%”. The expert emphasizes that these rates are the lowest possible with the maximum commitment on the part of the client, who must subscribe, among others, to home insurance.

The reason for applying higher rates is that non-residents allocate “the financing to the acquisition of a second home and have more difficulties in complying with some bonds that could discount the mortgage, such as the direct debit of the payroll or life insurance”, explains the director of the Ibercredit mortgage consultancy, Santiago Cruz del Pozo.

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