Non Resident Spanish Mortgage

Given Ibiza and Majorca have extremely active property markets, and real estate sits at the higher end of the price range, there is a growing demand for international mortgage finance in the Balearics in particular.

Enness have access to more than 500 private banks and international mortgage providers who take a very different approach to financing luxury property than their Spanish counterparts. While many Spanish banks can be reluctant to utilise your full wealth and assets, other lenders are more than willing to accept various assets as collateral. This is vital when looking to minimise costs, maximise assets and arrange mortgage finance as quickly as possible. Some of the key Balearic Island mortgage product highlights include:

• LTV ratios up to 70%
• Headline mortgage rate as low as EURIBOR 3 months +1.25% with the option to fix rates in the longer term
• Equity release option with 50% assets under management or a slightly higher headline interest rate

Menorca, while being a popular tourist destination, is quieter than both Majorca and Ibiza. The average property price is €3,350 per square metre, significantly less than Majorcan and Ibizan property.

It's often noted – rightly – that Menorca has less high-end property available than on some of the more popular islands, but that shouldn't be interpreted as the island not having any luxury property to offer. On the contrary, Menorca offers many high-value apartments, homes and estates, although certainly less than Ibiza and Menorca. In addition, many Menorcan properties come with significant grounds, and some have private sea access – a rarer occurrence on other Balearic Islands.

Menorcan property can be less expensive than neighbouring counterparts. The island is particularly popular with those looking for peace, tranquillity and privacy.

Many other smaller islands form the Balearic archipelago. Many of these tend to get overlooked and have less well-developed property markets, although they offer some of the same attractions as their more famous counterparts.

Mainland Spain and the Balearics are some of the most popular holiday destinations for UK residents, and it's estimated that more than half a million Britons own Spanish property. While Brexit has made living full-time in Spain more challenging for Britons not already living in the country pre-Brexit, there almost no restrictions for Britons who want to buy a Spanish holiday property or second home. Spain is heavily reliant on tourism. The significant number of Britons visiting the country each year means it makes no sense to place substantial restrictions on property ownership for UK residents, regardless of Brexit.

When it comes to Spanish mortgages for UK residents, as previously noted, not all Spanish banks and lenders will offer the most flexible or competitive mortgages to you. Spanish lenders will most likely view you in a very "black and white" manner assessing your income first and foremost and then evaluating how "risky" your profile is according to their internal guidelines. If you are retired, an entrepreneur, asset rich but have little income or your wealth is tied up in property or other illiquid assets, these are likely to make lending a challenge for many Spanish lenders who prefer borrowers with lots of liquidity and a steady income. 

Just like for other non-residents, if you are a UK resident looking for a mortgage for a Spanish property, Enness will be able to connect you with international and alternative lenders who will be able to offer competitive and flexible mortgage financing. In addition, Enness has access to lenders who will consider more than just your income and look at the other elements of your background to offer you a mortgage for Spanish property as a UK resident.

The island of Majorca has a permanent population of around 850,000 and the broadest spread of property prices and types across the three main Balearic Islands. Majorca's economy is dominated by tourism: an average year will see more than 25 million visitors. As well as being a popular holiday destination, there is continued interest from German, British, and Scandinavian real estate investors for Majorcan property.

Property prices in Majorca can vary widely. Prices start from around €6,250 per square metre and go up to approximately €10,000 per square metre. Over the last decade, there has been a significant reduction in the number of newbuilds across the Balearics, falling from over 12,000 just ten years ago to 1,842. The change comes as authorities look to preserve the Balearics' environment from damage caused by over urbanisation. Particularly in Majorca, the rules have had a major impact on the availability of new builds. As a result, many property investors are now looking to buy and redevelop Majorcan properties instead of buying new builds. 

The Balearic Islands are an archipelago of Spain situated in the western Mediterranean Sea. The area is most closely associated with the islands of Majorca (often referred to as Mallorca) and Ibiza. The island of Menorca also forms part of the Balearic Islands, although the island is known for being quieter and having less luxury property available. However, as Menorca becomes more popular, that may well change, and more luxury property is likely to become available.

All three islands are top-rated tourist attractions, but Majorca and Ibiza are best-known for being luxury destinations for high-net-worth individuals and international property investors. Many people compare the Ibiza property market to that of London – luxury property is aplenty. There is lots of real estate to choose from, even at the very top of the market. The Majorcan property market also offers homes and real estate at the top end of the pricing scale, but there tends to be a broader range of properties to choose from, all at different price points. 

The mainland Spanish mortgage market is continuing to recover after the financial crash of 2008. However, many repossessed stocks are held by domestic banks are slowly being drip-fed back into the marketplace.