FAQs about financing

Q: Are Spanish or Portuguese mortgages available with fixed and variable interest rates?

A: Normally, Spanish mortgage lending is made with the interest rate fixed for one year. This can, however, be extended to a five-year period.

A Portuguese mortgage can be fixed for 5, 7 or 10 years.

Q: How much can I borrow?

A: There is no legally stipulated loan ceiling. Mortgages of 50–80% of the property value are most common, depending on the bank chosen.

Q: What does it cost to take a mortgage loan in Spain or Portugal?

A: It depends on the size of the sum being borrowed. Normally, it will cost 3-5%. Some costs are fixed, while others are variable. In Portugal it costs approx. 1100 euro.

Q: What is the simplest way for me to pay the ongoing costs for my property in Spain and Portugal?

A: We recommend that you open an account with a Spanish/Portuguese bank and set up autogiro payments and internet banking. Many Spanish/Portuguese banks operate internet banking in English.

In Portugal the property tax cannot be paid through direct debit but can be paid through internet banking.