Not every buyer takes a Spanish mortgage. Several other routes get used in practice, depending on your finances and what the property is for.
Releasing equity in the UK #
The most common alternative is using the equity in your UK home, either through a further advance on your existing mortgage or by remortgaging.
The attraction is that the rate is frequently lower than in Spain and you stay inside a system you understand, with a lender you can phone. It also removes the Spanish lending limits from the equation entirely, which can turn a 65 per cent purchase into a cash purchase.
The constraints are your available equity and your income. Many buyers use this for part of the purchase and their own funds for the rest.
One thing to be aware of: you are borrowing in pounds against an asset priced in euros, so a move in the exchange rate changes your loan-to-value on the Spanish property even though nothing has happened to either property.
Your own capital, or family #
Funding from savings, a gift or a loan within the family is direct and flexible.
With a family loan it matters that the terms are properly documented: the interest, the term and the repayment. That avoids misunderstanding later and it has tax consequences on both sides, particularly around inheritance tax, which is worth taking advice on rather than assuming.
Buying through a company #
On larger investments some buyers purchase through a company, either a Spanish SL (Sociedad Limitada) or a UK limited company.
This can produce a different tax outcome on rental income or on a future sale, and it separates the property from your personal assets. Against that sit additional costs and ongoing administrative obligations in two countries.
It is generally used for investment property rather than a place you use yourself. There is a separate article on this.
Private lenders #
In specific situations, financing through private investors or property funds is possible. Decisions come faster and you are less dependent on bank criteria, but the rate is higher and the terms stricter.
This tends to be a route when conventional financing is not available or when speed is the deciding factor.
Practical points #
Draw up a financial plan before you commit to a route, and compare the cost, rate and conditions of each. Consider the tax consequences in both the UK and Spain, since they rarely point the same way. Put family arrangements in writing. And bring in an adviser as soon as the structure gets more complicated than a straightforward purchase.
In short #
Beyond a Spanish mortgage there are several routes: UK equity, your own capital, family, or a company structure. Which fits depends on your position, your purpose and your tax situation.
Financing structures have tax consequences in both countries. Have your own position reviewed by a qualified adviser before you commit.
Last reviewed 2026-08-24
Want this checked against your own situation?
A 20 minute call with a specialist in the region you are looking at, at no cost to you.