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Mortgage processing in Spain during July & August

May 2020 was Mortgage Direct's busiest month ever with regard to the number of new client enquiries received, and many estate agents across Spain have confirmed that they also have had a very strong month with new enquiries too. Of course, we don’t know how many of these enquiries are from clients who would have approached us anyway had it not been for Covid-19 so it remains to be seen if this increased activity will continue but nevertheless, it’s a very encouraging sign.

One important point is that these enquiring clients are committed buyers and are signing up for our services. We mentioned last month that our conversion rate (from enquiry to sign-up) had dropped by a half which was to be expected. We’re pleased to confirm that the number of clients wanting to start the official mortgage process now is almost back to pre-coronavirus levels. This is extremely positive news for the foreign market in general given there are still some restrictions in place for people traveling to Spain.

In terms of what’s happening to prices there are various opinions. In an article by Liz Rowlinson (originally published in The Sunday Times on 31 May 2020), the message from the agents interviewed is quite clear; the property market is hotting up again and any bargain hunters may have to wait. Of course we don’t yet know the medium to long term implications of the coronavirus and the impact this will have on the markets in general but this is certainly encouraging news for the short term and going by the number of mortgage enquiries we are receiving, the demand is certainly there.

Mortgage processing during July & August

We were asked recently about our expectations of the banks during the summer months in terms of completing mortgages already in the pipeline (as clients start to travel to Spain again) and our view of the efficiency of the process at the notaries.

While things always slow down in July and August, we at Mortgage Direct will be working at full steam. We have always been able to secure approvals over these months although sometimes at a slower pace. We currently work with more banks than we ever have before, so we potentially have alternative options if things slow down too much with certain lenders. Most of the banks now have the process streamlined anyway and often clients have the choice of signing the FEIN via electronic signing or sending original copies by courier. While we can’t guarantee there won’t be delays, the banks have all been working well for us during lockdown and we are confident that we have the best contacts.

We take care to explain to clients the new process at the notary. If they want to attend the notary for both the signing of the Acta and of the deeds, they need to arrange to be in Spain for at least 24-48 hours to comply with the cooling off requirements. If they grant Power of Attorney to their lawyer, they don’t need to fly over and we have had many completions going through in this way during the lockdown.

I hope this provides some comfort that mortgage cases can still be processed smoothly while Covid restrictions are still in place in Spain and overseas. Please don’t hesitate to contact us if you have any clients interested in a free, no-obligation mortgage quote and we’ll be happy to assist.

Mortgage enquiries

For any mortgage-related enquiries, please don't hesitate to get in contact with Katherine by calling her on +34 695 706 749 or by email at

Useful information

Maximum LTV

Up to 70% for non-residents

Up to 80% for residents

Variable interest rates (non-residents)

From Euribor + 1.15% = 1.15%

Current Euribo -0.169%

Fixed interest rates (non-residents)

From 1.5% for the whole term (20 years). Terms up to 30 years

Mortgage products & process

For further information on mortgage products, please refer to our website. Our step-by-step guide also helps clients understand how the process works.

Mortgage quote

To receive a mortgage quote with no obligation, please complete our online form or contact one of our qualified advisers - please rest assured that all information is treated as strictly private and confidential.

Required documents & charges

In terms of the documents required, we do not need these to provide an initial quote. Please refer to our charges page, which gives an example of the costs involved in a typical house purchase. Depending on the area of Spain, clients should allow between 12-15% of the declared price to cover all fees and taxes.


Jun 29, 2020 | 462 Page Views

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