Spanish Mortgages

Your house in Spain. Your loan in the United Kingdom*

Your Spanish property may be repossessed if you do not keep up repayments on your mortgage. If your Spanish mortgage is in euro, changes in the exchange rate may increase the amounts payable by you.

*excluding the Channel Islands and the Isle of Man. 

Mortgages are subject to your credit status and our responsible lending policy and lending criteria. Your loan will be secured by a Spanish law mortgage over your property in Spain. You must be aged at least 18 years to apply for a mortgage with us. 

Purpose

To purchase a property in Spain.


Lender

BBVA located at One Canada Square, 44th Floor, Canary Wharf, London E14 5AA

BBVA is a trading name of Banco Bilbao Vizcaya Argentaria, S.A.


Eligibility

Lending is subject to your credit status and our responsible lending policy and lending criteria. You must be aged at least 18 years to borrow from us. We usually require the term of your mortgage to end before you turn 70 years old.


Security required

Spanish law mortgage over the property you will purchase in Spain.


Currency

Pounds sterling or euro.

If you take out a mortgage in euro where your income is in sterling then a change in the currency exchange rate could affect the value of your payments in sterling. This could mean the sterling equivalent of your monthly instalments and the total amount payable on your mortgage could increase. 


Loan amount

The minimum mortgage amount is £40,000.00, or its equivalent in euros.


Loan to value ratio (LTV)

Up to 70% LTV (based on the lower of the purchase price and an independent property valuation).

(The LTV is the amount you wish to borrow under your mortgage as a percentage of the value of the property).


Repayment period

Up to 20 years subject to your credit status and our responsible lending policy and lending criteria. Your mortgage must be repaid in monthly instalments over its term.


Valuation

We will require an independent valuation of your property and we will charge you for this. The valuation for a property in Spain usually costs €295.00 but may be more depending on the value and location of your property. We will arrange for the valuation to be carried out once your mortgage application has been approved.



Key Product Terms

Currency

Interest Rate

Arrangement Fee

Sterling

Mortgage amount of £120,000 or less: 1.75% + Base Rate variable

1.5% of the amount borrowed subject to a minimum of £1,500

Mortgage amount of more than £120,000: 1.5% + Base Rate variable

1% of the amount borrowed subject to a minimum of £1,800 and a maximum of £10,000

Euro

Mortgage amount of EUR150,000 or less: 1.75% + 12 month EURIBOR variable

1.5% of the amount borrowed subject to a minimum of EUR2,000

Mortgage amount of more EUR150,000: 1.5% + 12 month EURIBOR variable

1% of the amount borrowed subject to a minimum of EUR2,250 and a maximum of EUR13,000


Representative example

A mortgage of £131,670 payable over 20 years at a variable interest rate of 1.75% per annum would require 240 monthly payments of £650.62. The total amount payable would be £160,620.31 made up of the loan amount plus interest plus £1,500 arrangement fee plus £2,671.51 estimated bank account fees.


2.1% APRC


Current account with BBVA Spain and BBVA UK and building insurance required as a condition of the mortgage.

Additional mortgage-related fees, taxes and charges will apply and which have not been included in the APRC calculation. Based on a typical Spanish mortgage, these additional fees, taxes and charges are: estimated valuation fee £279.46; estimated Spanish agent administration fee £269.98; estimated mortgage document tax (actos juridicos documentados) £1,902.45; estimated mortgage registration fee £286.54; and estimated mortgage discharge fee £313.16. Amounts in euro have been converted to sterling based on an indicative exchange rate of €1 to £ 1.2773. These estimated fees, taxes and charges are for illustrative purposes only. The actual cost will vary depending on the value, type and location of your Spanish property, and the amount you borrow.


Other fees and charges

You must also pay your own solicitor's legal fees and notary fees, registration costs and fees relating to the registration of transfer in connection with the purchase of the property in Spain.


Early repayment charge

No early repayment charge.



Explanation of terms
Base Rate refers to the interest rate on your mortgage. Base Rate means the official interest rate set from time to time by the Bank of England’s Monetary Policy Committee. The Base Rate can change at any time and when it does it means the rate of interest on your mortgage will also change. Note that the Base Rate is an external rate set by the Bank of England – it is not a rate set by BBVA. 


12 month EURIBOR refers to the interest rate on your mortgage and applies if your mortgage is in euro. The 12 month EURIBOR rate is a rate set by the European Money Markets Institute (EMMI) or, if that rate is not available to us, by certain leading banks in the European banking industry. The EURIBOR rate we use is set on the 15th of March, June, September and December each year and changes on each of those dates. We use the applicable 12 month EURIBOR rate on each of those quarterly rate fixing dates. When the 12 month EURIBOR rate changes, the interest rate on your mortgage will also change.


Variable interest rates   All of our Spanish mortgages are based on variable interest rates. This means that the interest rate may change during the term of the mortgage. If the interest rate changes, the monthly instalments and the total amount payable on your mortgage could increase.




YOUR SPANISH PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. IF YOUR MORTGAGE IS IN EURO, CHANGES IN THE EXCHANGE RATE MAY INCREASE THE AMOUNTS YOU HAVE TO PAY UNDER YOUR MORTGAGE.


Our rates are applicable for mortgage applications made today. We may change or withdraw this product at any time before you make an application to us.

The steps to apply for a Spanish mortgage are set out below. See also our FAQs if you have any queries.

BBVA provides an execution-only mortgage service. This means we will not provide you with advice on your mortgage or make any personal recommendation to you about your mortgage product.

It also means your application shoul be made online and then sent to us by email or post. Details of how and where to send the application and supporting documents can be found in the "Step by Step" tab. 

STEP 2- Choose a mortgage
Our Customer selection form details the mortgage products available to you. Simply tick the box next to the specific mortgage product you require. You will need to return this document with the cover letter in this section and your completed application form to enable us to process your mortgage.
Mortgages are subject to your credit status and our responsible lending policy and lending criteria. Your loan will be secured by a mortgage over your property in the UK. You must be aged at least 18 years to apply for a mortgage with us.
STEP 4- Documents required
A list is included for your reference detailing documents you need to provide us to support your mortgage application.
STEP 5- Apply for a mortgage
You will need to complete the application form if you wish to apply for a mortgage. If there are more than two applicants please complete a further application form.
How much can I borrow?
The amount you are eligible to borrow will be determined by the cost of the property you wish to purchase and your credit status, our responsible lending policy and lending criteria.  The minimum amount for a mortgage application is £40,000 or its equivalent in euro.
What is LTV?

Loan to Value Ratio (LTV) is the amount you wish to borrow under your mortgage as a percentage of the value of your home.


The maximum LTV we will consider is 70%.  For example if you want to purchase a property of €100,000, the maximum amount of loan we can grant is €70,000 or its equivalent in euros.  This is subject to a formal valuation and based on the lower of the purchase price or the valuation.

What is APRC?
Annual Percentage Rate of Charge or APRC shows the overall cost of a mortgage. It is used to compare mortgages.
Can I apply for a mortgage in euro?
Our Spanish mortgages are available in both sterling and euro.  Please bear in mind that if you take out a mortgage in euro where your income is in sterling then a change in the currency exchange rate could affect the value of your payments in sterling. This could mean the sterling equivalent of your monthly instalments and the total amount payable on your mortgage could increase.
Is there any age criteria?
We usually require the term of your mortgage to end before you turn 70. You must be at least 18 years old to borrow from us.
How do I open an account with BBVA?

We require you to open a BBVA UK current account so that your repayments can be processed.

Once your mortgage has been approved we will send you an account opening pack which includes an account opening application form and a proof of identity leaflet setting out the identification documents we require from you to open a bank account with BBVA UK. 

Send your completed bank account application form and identification documents to us by post, or pop into one of our UK branches.

How do I open an account with BBVA Spain
We will arrange to open this for you at the nearest branch to your Spanish property.  We will require proof of identity, proof of address and latest P60 or tax return in order to open the account.  You will be required to visit the branch where the account is opened to sign the account opening documents.
What are the fees and costs associated with my mortgage?

A Spanish mortgage administration fee, other fees charges and taxes will apply. Based on a mortgage of £75,591.57 (approximately €90,000 at the exchange rate of 1.1907) our arrangement fee would be £1,500 and the estimated costs associated with the purchase and mortgage in Spain would be:


Mortgage document tax (Actos Juridicos Documentados)
€2,253
Notary fees
€950
Spanish mortgage registration fee
€450
Our Spanish agent's administration fee (Gestoria)
€360
Impuesto de Valor Añadido (I.V.A) Tax calculated as a percentage of the loan amount
€76
Valuation fee
€280
Spanish mortgage discharge fee
€244
Building insurance (yearly estimate)
€250
BBVA UK monthly maintenance fee
£8
BBVA Spain yearly maintenance fee
€48

  


The above are estimates and to be used for illustrative purposes only. The actual fees and charges will vary depending on your loan amount, the type and location of your property and whether it is a new build or not. Further fees, costs, charges and taxes are payable relating to the purchase of your Spanish property and the appointment of your own solicitor and advisers.

Who carries out the valuation?
Once your mortgage has been approved we will arrange the valuation by instructing a surveyor. We will ask you to send BBVA the valuation fee prior to the valuation being carried out.
Do I need a solicitor?

You will need to appoint a solicitor or other legal adviser who can advise you on the process, check your legal documentation and deal with the conveyancing. You will need to pay your solicitor fees and charges directly to them.

Do I need to be in Spain to sign the mortgage deed?
Yes.  However, if you have granted your solicitor Power of Attorney they may represent you at the notary on the day of signing. Although we will arrange for your BBVA Spain bank account to be opened you will need to sign the documentation at the branch in Spain were the account is held.
Do I need Building Insurance?

Yes. Our mortgage conditions will require that you take out building insurance to cover damage to or destruction of your property for all normally insurable risks, such as fire, flood damage or "Acts of God" but usually not losses such as war or terrorism.

We will require you to take out buildings insurance from an insurer of your choice established in the European Union with a minimum financial strength rating of AA or equivalent by a ratings agency acceptable to us. The policy must be in place by the time you draw down funds under the loan. You must comply with this obligation for the duration of the mortgage. BBVA must be specified as “loss payee” under the insurance policy or BBVA's interest as mortgage lender must be otherwise endorsed on the policy.

BBVA does not offer insurance in the UK.

Can I view my mortgage online?
If you have online banking you can view your mortgage account and any other account you hold with BBVA UK. If you do not have online banking please contact your account manager.
Have you got fixed rate deals?
All our interest rates are variable based on the Bank of England Base Rate, or if your mortgage is in euro, based on a euro interbank lending rate called the Euro Interbank Offered Rate or "EURIBOR". We use the relevant EURIBOR rate for 12 month euro borrowings, but we fix the rate on a quarterly basis for your mortgage.
What are the interest rates available?
Loan To Value Ratio
Currency

Mortgage amount
Interest Rate
Arrangement Fee
Type of mortgage
Annualised Percentage Rate Charge
Up to 70% LTV
Sterling

£120,000
1.75% + Base Rate variable
1.5% of amount borrowed min £1,500
Repayment mortgage
2.4% APRC
Up to 70% LTV
Sterling

Over 

£120,000

1.50% + Base Rate variable
1% of amount borrowed min £1,800 max £10,000
Repayment mortgage
2.1% APRC
Up to 70% LTV Euro
€150,000 or less
1.75% + 12 month Euribor variable 1.5% of amount borrowed min €2,000
Repayment mortgage 2.3% APRC
Up to 70% LTV Euro
Over €150,000
1.55% + 12 month Euribor variable 1% of amount borrowed min €2,250 max €13,000
Repayment mortgage 1.9% APRC


                                                                       

Representative example

A mortgage of £300,000 payable over 20 years at an interest 2% per annum would require 240 monthly repayments of £1,517.65. The total amount payable would be £368,155.00 made up of the loan amount plus interest plus £999 arrangement fee plus £1,920 estimated bank account maintenance fees.


2.2% APRC


A current account with BBVA in the UK and buildings insurance over the secured property, will be required.





 

Can I remortgage my existing mortgage?

Yes.  Please see our rates in the Key Terms and Conditions section.  You can also compare our repayments with your current mortgage by using our Repayment calculator.

SPANISH MORTGAGE PROCESS

Our step by step guide to the Spanish Mortgage product. This guide will take you through all the steps, enabling you to track the process from making your application (the documents for which can be found under the How to Apply tab) to completion day.


1 INITIAL DISCLOSURE

Review the information about us and about how we will provide our mortgage service to you.


2 APPLY FOR A MORTGAGE

Complete your mortgage application form, tick your customer selection form, complete the cover letter and collate your supporting documents.  


3 DOCUMENTS REQUIRED

Under this section a list is included for your reference detailing documents you need to provide us to support your mortgage application.


4 SEND US THE MORTGAGE APPLICATION

The details of where to send your completed application form, supporting documents and customer selection pack to us are:

  • by email: emailyourapplication@bbva.com
            or
  • by post: BBVA
            Spanish Mortgage Department
            One Canada Square
            44th Floor
            Canary Wharf
            London
            E14 5AA


5 RECEIVING YOUR SPANISH MORTGAGE APPLICATION

We will acknowledge receipt of your Spanish mortgage application form. We will also ask you to give us a declaration agreeing to an execution-only mortgage process.


6 ESIS

We will send you our European Standardised Information Sheet (ESIS). This is our pre-contractual disclosure document which sets out the key terms of the mortgage you have selected.


After you have had the chance to review the ESIS, you should confirm to us whether you wish to go ahead with a formal mortgage application by sending us a signed "Formal Application Letter", the template for which we will send you by email or post if you prefer. When we receive your signed Formal Application Letter, we will carry out an affordability assessment which may include a credit check, using an external credit reference agency and we will consider your ability to repay the mortgage based on the information you have provided to us.


7 APPROVAL

If all our checks and assessments are completed and we approved your application then you will be allocated a dedicated personal account officer who will contact you to assist you with the mortgage completion process.


8 ACCOUNT OPENING UK

Your personal account manager will liase with you to open a current account with BBVA in the UK. We will require you to complete the forms and return with the documentation requested in our “Proving your Identity leaflet” which will be enclosed in the pack. Once the account is opened we will inform you of the account details.


9 ACCOUNT OPENING SPAIN

Your personal account manager will send you the necessary forms to open a bank account with BBVA Spain.  For your convenience we open the account with a branch that is nearest to the property you are purchasing. Alternatively if you have a preference for a particular branch please let your account officer know. We will require you to complete the forms and return them with the documentation your account officer will request from you.  Once the account is opened we will inform you of the account details. 


10 VALUATION

We will request the valuation.  The valuers are randomly picked from a panel of independent BBVA approved valuers in Spain. At this stage you will need to transfer to BBVA UK sufficient funds to cover the cost of the valuation and the arrangement fee. 


11 LEGAL PROCESS IN SPAIN

Garsa (Gestores Administrativos Reunidos, S.A.) is a mortgage administration company located in Spain who will assist us with the process of obtaining the mortgage over your property in Spain. Please be aware that GARSA act for us and they will only be involved in so far as is necessary to prepare, sign and register the mortgage. They will not be available to assist you on the purchase aspects of the transaction and you should have your own solicitor in Spain who will help you manage this.


GARSA will provide us with the “Provision de Fondos” which is a document that details the costs associated to the mortgage aspect of the transaction. These included Spanish Law taxes, Spanish administration fees, Notary Fees, Mortgage registration fee.  This will not include our arrangement fee or any fee charged by a solicitor acting on your behalf. They also do not include fees, taxes and charges related to the transfer of the property to you. You will need to liaise with your solicitor regarding these fees.


Once we have the “Provision de Fondos” we will ask you to transfer funds to cover the amount to your BBVA account in Spain. 


Our administration department in Spain will prepare the legal documents needed to complete your mortgage including the Spanish law mortgage document called the “Escritura”.  This document outlines the exact terms and obligations of the lender and the mortgage.  We will let you know at which Notary the Escritura will be signed.  The offices are normally near to the BBVA Spain branch where your account is held.


12 OUR OFFER DOCUMENT

We will send you our binding offer letter for signature.  If you wish to go ahead with the mortgage you will need to sign and return the offer letter to your personal account officer.


13 BUILDING INSURANCE

You will need to arrange for building insurance on the property you purchase.  You will need to forward a copy of the policy to us before the day of signing. You will need to arrange for BBVA Uk's interest to be noted on the policy.  You can request a quote from our BBVA Spain branches for building insurance if you wish.


14 DAY OF SIGNING

The signing of the Escritura takes place on the day of completion at the Notary's office in Spain. A representative of BBVA, a representative of Garsa, the Notary, your appointed solicitor and yourselves if you choose to be present, will meet to sign the document. If you do not wish to be present then you can arrange for a power of attorney to be created in favour of your solicitor and they can sign the escritura for you.

The mortgage amount and fees are then transacted and the purchase completed.


15 POST COMPLETION

After the mortgage agreement and the Spanish law mortgage are signed, our administration team in Spain will register the documents with the relevant Spanish authority. You may have to pay fees, charges and taxes associated with the mortgage and the purchase of your Spanish property. The money for these will be held and paid by our administrator or the notary.


Congratulations on purchasing your Spanish property!

GENERAL INFORMATION ABOUT OUR MORTGAGES

BBVA offers mortgages for business and non-business purposes including house purchases in the UK and in Spain.

We also offer commercial pilot training mortgages and type rating mortgages to help fund your commercial pilot training course.

We provide mortgages secured over properties in England, Wales, Northern Ireland, Scotland and Spain. we may provide mortgages secured over other properties in the European Economic Area – ask us for more information.

As security for your mortgage we will require a legal charge over your property (if it is located in England, Wales or Northern Ireland) or a standard security (if your property is located in Scotland) or a Spanish law mortgage (escritura de hipoteca) (if your property is located in Spain). 


All our mortgages are on a capital repayment basis-repayable in monthly instalments over the term of the mortgage.

MISSED PAYMENTS


If you fail to meet your monthly loan instalments then we may repossess and sell the property securing your loan and we may commence legal proceedings against you or your guarantor. Our legal costs will be added to the balance of your loan and you will be required to pay these. Our legal costs can include court costs and associated costs.

Missed payments on your loan or making underpayments also means that the total cost of your debt will grow and that you may have an impaired credit rating leading to credit being more difficult or more expensive for you to acquire in the future

You will not be able to close your current account or cancel your insurance policy (although you can move to another insurance provider who meets our requirements) during the term of your mortgage.

You will be in breach of your mortgage terms and conditions if these obligations are not complied with.