How do I get a mortgage for my holiday home in Mallorca

Mallorca Real Estate
Mortgage for holiday home in Mallorca

The best way to get a mortgage for your holiday home in Mallorca is to contact a Spanish mortgage broker. They are experienced in arranging mortgages for foreign buyers. You will need to provide them with documents. Which means: evidence of your ability to pay off the loan. And the option contract. Additionally, in some cases you will need to supply them with additional information. This could be the evidence of income or employment. Once you have done this the mortgage broker will assess your financial situation. Normally you agree upon a fee for his services. And he will advise you on the best product that is available to you.

Which mortgage broker to chose when looking for a mortgage in Mallorca

When looking for a mortgage in Mallorca, it is important to find a reputable and experienced mortgage broker. Some factors to consider when choosing a mortgage broker include: reputation, years of experience, customer service, and knowledge of the local market.

The best way to find a trusted and experienced mortgage broker is to ask around to family, friends, and colleagues who may have used their services. You can also research online reviews of potential brokers in the area. Additionally, it is recommended to consult with at least three or four different mortgage brokers to compare the different products and services they offer.

Three good mortgage broker in Mallorca

If you’re looking for a mortgage broker in Palma de Mallorca, there are a few great options to consider. One of the best places to start is with Nicky Buchanan from Mallorca Mortgages. With office in Palma de Mallorca she works with many Spanish banks and offers a wide range of services, from mortgages and refinancing to finding the best credit offers.

Another great option for mortgage brokers in Palma de Mallorca is the Lionsgate Capital Established in 2016, this group boasts decades of experience in providing finance and credit to those in and around Palma de Mallorca. Founder Juanita Casanas worked in a Spanish Bank many years before founding her company. With services like financial and wealth tax reduction, they are well-versed in many different facets of the mortgage market.

Finally, another helpful resource is Clifton Private Finance. They provide services like mortgage refinancing, foreclosures, mortgages and loans, and home equity refinancing through an owned property in the UK. Obviously, this service is only available if you already own a property in the UK.

Three good banks for a mortgage in Mallorca

If you prefer to shop by yourself here are three good banks for a mortgage in Mallorca:

  1. BBVA Balearic Islands: BBVA offers a wide range of mortgage solutions in Mallorca, with competitive terms and rates.
  2. EVO Banco: EVO Banco is an excellent choice for mortgages in Mallorca, offering a wide range of financing solutions from mortgages to working capital.
  3. Caixabank: Caixabank is another viable option for mortgages in Mallorca, providing competitive rates and terms for the purchase or refinancing of homes.

Special Deal: mortgage for German homebuyers in Mallorca

If you work in Germany there is another great option to mortgage your Property in Mallorca. You don’t need to be of german nationality, but your income must be earned and taxed in Germany. That’s mandatory for them.

There is a Group called LBS which does real estate financing in Spain. LBS is extremely popular among german Homebuyers. But for financing german properties, not abroad.

LBS international division works therefore mostly with german developers and realtors in Spain and don’t maintain offices in Mallorca. So it won’t be easy to get the right contact if you want to call them directly.

LBS has different divisions in Germany and many sales agents. But they don’t offer the niche product of a Mortgage in Mallorca.

Nevertheless, LBS provide german property owners with a secure, lucrative and long-term fix rate mortgage on a house or apartment in Spain. And they don’t care if you want to buy or you already bought. They don’t care what you want to do with the money from the mortgage. They just want to know your reasons. You show your income, wealth and credit score, that’s all they need.

Customers usually have the choice of taking out what is known as a variable rate or fixed rate loan. A variable rate loan means that a lower rate must be paid at the beginning, but it increases over time, while still being within the current market conditions. However, with a fixed rate loan, the rates remain the same.

CPH Invest as a property developer works closely with the Spanish agent of LBS. If you want to contact LBS in Germany, just write an Email and I can forward you the contact.

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