Are you dreaming of buying a holiday home in Spain or Portugal? Or are you considering moving there definitively? Well, your mortgage options differ quite a bit if you are resident or not. Learn more on mortgages for holiday or primary homes.
Holiday home mortgages
Mortgages for holiday homes are often for foreigners or for real estate buyers that are non-residents. In Spain and Portugal, the maximum amount you can borrow corresponds to 70% of the property value or the purchase price.
Fixed, variable or mixed mortgage rates
Before making any decision, you should compare rates with various lenders who offer fixed, variable and mixed rates. For variable rate mortgages, the figures are based on the annual Euribor reference rate with a percentage margin added.
You can get mortgages with rates as low as annual Euribor + 1.35% or fixed rates from 2% for premium, non-resident clients. Your specific circumstance and qualification will be determined during your application. Typically, the rates range from Euribor + 1.9% to 2.15% but are still lower than publicised rates or if you were to go directly to the bank.
Primary home mortgages
If you plan to definitively move to Spain or Portugal you will have to settle your primary residence and pay your tax income tax there. The big advantage (beside living in a sunny climate), is that for this type of mortgage, it is possible to secure mortgages for up to 80% of the property purchase price with rates from Euribor + 0.99% or fixed rates from 2.05%.
Get a mortgage quote for your property from your couch
You’ve been thinking about getting a mortgage loan to buy your dream home - congratulations! Properstar is partnering with a leading mortgage broker, Mortgage Direct, that operates in Spain and Portugal. Together, we can help you to find the right mortgage solution.
You'll get personalized mortgage advice and up to 2 no-obligation mortgage quotes. Find out more details and get your quote directly.
* Mortgage Direct is regulated by the Bank of Spain and is registered in the Blended Occupancy Specialist (BOS) Registry of Real Estate Credit Intermediaries under number D108.