Getting A Mortgage

Getting a mortgage on Lanzarote has certainly become tougher for non residents since the onset of the credit crunch, as banks here have pulled back on lending across the board.  But it is certainly still possible to secure finance and you do not have to be resident on Lanzarote to apply for a mortgage or own property here.


Mortgage Basics

 Non-Residents can apply for mortgages of up to 70% on their Lanzarote property purchase price.

The purchase process is fairly similar to that of the UK and is relatively straightforward and easy.

Just as in the UK, local banks will provide buyers with a valuation price. This is the figure that they lend against.

Your selected Estate Agent should be willing and able to help you throughout the process.

Selecting a Mortgage

Most Estate Agents will be happy to recommend a local bank. Most will also be happy to secure a couple of quotes from these banks for you.

Alternatively shop around yourself. It can be in your interest to do so as mortgage deals do vary from bank to bank.

Local banks are used to dealing with English speaking buyers. Walk in and ask.


Applying for a Mortgage

Local banks will usually require the following paperwork.

  • Payslips/payroll (3 previous months)
  • P60
  • Passport photocopy (for all named applicants)
  • Proof of other income/assets

If you are self-employed you will also need to provide proof of earnings in the form of:

  • Statement of accounts (last two years)
  • Proof of tax payments (last two years)

Some local banks may ask to carry out a credit check on applicants in their country of residence.


Once you have applied for a mortgage your chosen bank will carry out a valuation. This usually happens within two weeks of receiving your application.

The valuation may not be the same figure as the purchase price.

However, your bank will only lend funds against their valuation price NOT the purchase price.

The valuation usually costs around €300.

This cost is usually added to your total borrowing and repaid as part of the mortgage.

Mortgage Arrangement Charge

As in the UK, Banks charge a fee for arranging mortgages.

This figure is generally around 1% of your total borrowing BUT it can vary from bank to bank.

This figure is usually simply added to the total borrowing and repaid as part of the mortgage.


Mortgage decisions are usually made quickly. Once the bank has carried out the valuation you should expect a decision within 2-3 days.

Where to Next?

Find out how to complete your Lanzarote Property Purchase.