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Spanish mortgage costs explained


There is nothing quite as daunting as having your hopes dashed by the rocks of ignorance. The ignorance that is referred to here is the simple fact of “not knowing” all you need to before making a decision. A deeper understanding of Spanish mortgage costs will help you make the right decision. Although it may seem a little confusing to a beginner, we have tried to highlight the key points.


Spain is a beautiful, peaceful, and stress-free lifestyle that appeals to many. However, without knowing all there is to know about purchasing property in Spain, it can turn into quite a headache!


Spanish Mortgage
Spanish Mortgage costs include:


Property valuation: Spanish Mortgages require a property valuation which means that a certified valuation company will make an estimation of the value of the property before a mortgage can be taken on the property

Land registry fee: Before a Spanish Mortgage lender will lend money towards the purchase of the property, it must be ascertained if there are any outstanding debts owed against the property.

Opening Fee: Usually around 1% of the value of the property, this is the charged set fee for establishing a Spanish Mortgage.

Mortgage Insurance: When creating a Spanish Mortgage there are three types of insurance required. The first deals with the contents of the house and the house itself. The second is life insurance and the last is mortgage insurance. The first is self-explanatory and the last two are not necessarily mandatory but becomes important when negotiating the mortgage for the house.


Notary Fee: This is a charge for the clauses included in Spanish Mortgage and is based upon how many clauses there are

Land Registry Fee: The fee established by the Spanish Mortgage itself and is usually the same cost as registering the land itself, only it is included in the mortgage


Stamp Duty: Anywhere from .85% to 1.7% of the value of the Spanish Mortgage

Deed Arrangement Fee: This fee is for the deed to be inscribed in the local land registry to be certain that all matters of the Spanish Mortgage are correctly done

Early Cancellation Fee: A 1% fee based on the value of the Spanish Mortgage should the owner cancel the mortgage

Partial Cancellation Fee: Usually based on the amount of the Spanish Mortgage that is paid off early

Subrogation Fee: This fee is similar to the opening fee, but is one that the person who takes over a mortgage pays in lieu of the opening fee as in a new Spanish Mortgage, and also sets a lower rate for Notary, land taxes, and registry

Interest Payments: This is the part of the payment made to your Spanish Mortgage that is charged as a fee for the bank to carry the mortgage and is higher at the beginning of a Spanish Mortgage than at the end

Capital Repayment: This is the amount in the monthly payment that covers the actual cost of the house less the interest.


Steve Magill is the right source for more information on the Spanish mortgage market. He is a partner in  and a Fellow in the British Association of Entrepreneurs (FBAE). He holds international renown for having hands-on experience in this field.

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10 secrets every spanish property buyer should know
10 Secrets Every Spanish Property Buyer Should Know
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