How long does it take to get a Spanish mortgage?
For non-residents buying a property in Spain, securing a mortgage usually takes 6 to 8 weeks, from initial pre-qualification through to final signing. A Place in the Sun Mortgages breaks down each stage in this 6 step process.
Step 1: Mortgage pre-qualification and initial assessment (up to 48 hours)
The first step is an initial review of your financial circumstances. Your mortgage adviser will assess your income, assets and existing liabilities to estimate how much you may be able to borrow and identify the lenders best suited to your needs. For non-residents, this stage can take a little longer, as banks may require supporting documents from your country of residence, including foreign tax returns, proof of income or employment certificates.
Tip: when buying a house in Spain, starting the mortgage process early can help prevent unnecessary delays further down the line!
Step 2: Bank mortgage assessment (1-2 weeks)
Once your initial profile has been reviewed, the bank conducts a more detailed assessment of your application. This includes examining your financial situation, income stability and existing debts. For international buyers, banks may request additional documents or clarification about overseas income and financial commitments.
Tip: responding to these requests promptly can help keep the application moving and avoid extending the timeline!
Step 3: Property evaluation (1-2 weeks)
After you have selected a property, the bank arranges an official valuation to establish its market value. This figure is used to help determine the mortgage calculation. For non-residents buying a house in Spain, there are several important points to consider:
- Loan-to-value (LTV): Non-resident mortgages typically cover around 60–75% of the property's value, depending on the lender and your financial profile.
- Valuation basis: The mortgage amount is generally calculated using the lower of the purchase price or the official valuation.
- Validity period: A property valuation is typically valid for six months.
If the valuation expires before the purchase is completed, a new valuation may be necessary, potentially adding further time and cost to the process.
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Step 4: Mortgage approval and FEIN issuance (2-5 days)
Once the bank has approved your application, it issues the FEIN, the standardised document setting out the terms of your binding mortgage offer.
The FEIN must be provided within the timeframe required by Spanish law to allow you to review the offer before signing. The mandatory pre-signing period is generally at least 10 calendar days, although the exact requirements can vary depending on the applicable rules and circumstances.
Important: The mortgage offer is based on the financial information available when the bank approves your application. Significant changes to your income, employment or outstanding debts could prompt the lender to reassess your circumstances or revise the offer.
Step 5: Mandatory cooling-off period and notary review (10-14 days)
Before the mortgage can be signed, Spanish law requires a mandatory pre-contractual period during which you can review the mortgage terms and seek independent advice. During this stage:
- You attend a preliminary appointment with a notary of your choice.
- The notary explains the mortgage conditions and ensures you understand your obligations.
- The required documentation and final checks are completed before signing.
Your mortgage adviser can coordinate with the bank, your lawyer and the notary to ensure all parties are prepared for completion.
Step 6: Mortgage signing and property completion (1-2 days)
The final stage involves signing the mortgage deed and completing the property purchase before a notary. The ACTA must generally be signed at least one calendar day before the mortgage deed. Once the mortgage and purchase deeds are signed:
- Mortgage funds are released in accordance with the lender's arrangements.
- Ownership transfers to the buyer.
- The purchase is completed.
Get in touch with A Place in the Sun Mortgages
A Place in the Sun Mortgages can help you explore your borrowing options and navigate the process of finding the right mortgage for your overseas property purchase.
