Currency and mortgages: how UK buyers fund a Spanish purchase

Three funding routes — and why most UK buyers blend them

UK buyers usually choose between Spanish mortgages, UK remortgages, or paying cash via a currency broker. In practice the savviest buyers blend two of the three: a partial Spanish mortgage for the leverage and the natural EUR hedge, plus cash from the UK timed via forward contracts. Below is what each route actually looks like in 2026 numbers.

Spanish mortgages for non-residents

• Typical loan-to-value: 60–70% for non-residents (vs 80% for residents)
• Rates (early 2026): around 3.8–4.5% fixed for 20–25 years
• Arrangement fees: ~1% of the loan, plus appraisal (€400–€700)
• Notary, registry and gestor on the mortgage deed: ~1.5%
• You'll need 6 months of UK bank statements, last 2 years' P60s, employer letter, and proof of clean credit

The big advantage: the loan is in EUR, matching the currency of your Spanish income or future sale. The big disadvantage: Spanish bank underwriting can take 6–10 weeks and is considerably more conservative than UK lenders are used to.

UK remortgage or equity release

For owners with significant UK property equity, a remortgage at home is often the cheapest route on a pure rate basis — and removes Spanish underwriting risk entirely. The trade-off is 100% currency exposure: every euro of ongoing maintenance, community fees and IBI is bought at whatever the GBP/EUR rate happens to be that month.

This route works best when:

• You have a clear UK exit plan and don't need long-term EUR matching
• You can secure a competitive UK fixed rate
• The Spanish property is for personal use rather than rental