Step 12 of 48 Phase 2: Organize Your Finances
2.5 Types Of Spanish Mortgages
Learn about the different types of mortgages (hipotecas) available from Spanish banks for Costa del Sol non-resident buyers.
Spanish Mortgage Types
| Type | Best For | Key Features |
|---|---|---|
| Fixed (Tipo Fijo) | Stability seekers | Set rate for entire term, predictable payments, typically higher initial rate |
| Variable (Tipo Variable) | Rate optimists | Euribor + margin, payments can rise or fall, typically lower initial rate |
| Mixed (Mixto) | Hedgers | Fixed for 5-10 years then variable, balance of certainty and flexibility |
Pro Tips for Costa del Sol Non-Residents
- Non-residents typically get 60-70% LTV (compared to 80% for residents)
- Interest rates are usually 0.25-0.5% higher for non-residents
- Fixed rates offer peace of mind if you budget in GBP, USD, or other currencies
- Consider linking products (insurance, pension) to get rate discounts
- Many Costa del Sol expat mortgage brokers can compare multiple bank offers
Common Mistakes to Avoid
- Choosing variable without budgeting for potential Euribor increases
- Not comparing the TIN (nominal rate) and TAE (APR including fees)
- Ignoring early repayment penalties — especially on fixed-rate mortgages
- Not asking about linked product requirements that may increase costs