3 Ways to Finance Spanish Property Investment

Investors looking for property investment in Europe often turn to Spain. With a thriving property market that’s shown growth year-on-year, Spanish property is, on average, 40% cheaper than UK equivalents, allowing you to structure development projects with a smaller initial outlay.

Navigating the complexities of funding between the UK and Spain can be complex, however.

There are three main ways to fund a Spanish property investment for a UK national, leading to potential profits or a sunny holiday home - and at Clifton Private Finance, we have expertise in all three, helping you overcome hurdles and even offer a fourth unique option.

Key Takeaways

• Buying property in Spain is up to 40% cheaper than in the UK - making it an excellent market for investment.
• Funding exists for both short-term ‘flip’ projects or longer-term rental property purchases.
• Bridging finance enables you to act as a cash buyer for securing deals and meeting auction deadlines.
• Clifton Private Finance work with both UK and Spanish lenders to provide a seamless funding solution.

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The Investment Potential in Spanish Property

At the time of writing (May 2025), the average price of a Spanish residential property is around £2,000 per square metre. Compared to the UK average, which comes in above £3,000 per square metre outside of London and as much as twice that in the capital, Spanish property is very enticing. This is especially true when using equity in UK homes or commercial property as security for the loan.

Project managing a property renovation from afar can be complicated though, with local bureaucracy, licensing complications, and trying to coordinate contractors all likely to cause a major headache for UK-based investors. For that reason, it’s essential that you have flexible funding in place that has the room to react to any issue.

Done correctly, however, - with Clifton Private Finance as your funding partner - property investment in Spain can be done efficiently and profitably.

Finance Route #1 - UK Bridging Finance

Bridging finance is the fastest and most flexible form of property finance available. In the UK, where the bridging market is maturing and become more mainstream, obtaining high-value bridging finance to fund a Spanish property flip investment is extremely viable.

Because bridging finance is extremely fast, it is perfectly suited to snap up an opportunity on the Spanish property market.

Auction purchases can be completed quickly - well within the auction payment deadline, and off-market property can be bought without delay. Bridging finance gives you the power of a cash bidder with no mortgage property chain, able to command discounts and superior prices from buyers eager to make a sale and move on - perfect when looking to buy property with a view to renovation and resale.

This means you only have the equity that exists in your UK property for collateral, potentially limiting your funds. Similarly, if your plans involve keeping the property once the renovations are complete, either as a holiday property or let, then Spanish refinancing strategies may not be considered sufficient as an exit from a UK loan.

With the lower price of property in Spain, however, securing bridging finance solely against your UK property is often enough to see the project to completion, with up to 80% loan-to-value available for UK homeowners.

UK Bridging Finance for Spanish Investment - Pros and Cons

Working with Clifton Private Finance as your broker provides the solution to these complications. Our years of experience, coupled with established relationships with the full market of UK lenders means we can help you raise the maximum level of bridging against existing UK property, while advising on the key requirements lenders have for exit strategies.

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Finance Route #2 - Second-Charge Mortgage on a UK Property

If you don’t need the rapid flexibility of bridging finance, then a second-charge mortgage, or secured homeowner loan, may provide the answer you need.

With UK property around a third more valuable than Spanish equivalents, it is possible to raise the capital needed for a full foreign purchase even when you still have years left to pay on your existing mortgage.

A second-charge loan, so called because it is the secondary debt secured by your property after the primary mortgage, will enable you to leverage the equity you have built up in your home to buy abroad.

With a familiar monthly repayment process, a second-charge mortgage doesn’t need an exit strategy and is often considered more suitable if you are looking to buy a property in Spain for long-term ownership.

UK Second-Charge Mortgage for Spanish Investment - Pros and Cons

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Finance Route #3 - Spanish Bridging Finance

Through Clifton Private Finance and our international partners, UK nationals can raise funds directly in Spain, using the purchased property as the primary security.

Though Spanish lenders are more cautious regarding bridging and development finance, and may not offer the type of rates or size of loan you could get with a UK finance company, Clifton Private Finance’s specialist partnerships with Spanish bridging lenders means you can access the most effective local deals while working from a UK base.

Spanish Bridging Finance for Spanish Investment - Pros and Cons

Speak to us at Clifton Private Finance to learn more about our Spanish partnerships.

Finance Route #4 - Clifton Private Finance Unique Hybrid Solution

The complexities of working abroad can typically mean having to lean the finance in one direction or another - either UK based bridging or second-charge mortgage, or Spanish based bridging with a potentially higher rate and lower LTV.

Unlike sole UK-based bridging finance, it’s not possible to use both existing property and the new property together to form a stronger combined security - except with Clifton Private Finance, you can.

This would involve:

• UK bridging finance or second-charge mortgage secured on UK property
• Spanish bridging finance secured on the new Spanish property
• Centralised administration with Clifton Private Finance
• Professionally developed exit strategy and refinancing options

With the combined security, finance can be achieved that covers the full 100% cost of the property plus any renovation or construction work - potentially requiring zero cash deposit from you.

Combined Bridging Finance for Spanish Investment - Pros and Cons

With true funding power, our hybrid solution provides the perfect answer for anyone looking to invest in a Spanish property.

Using Clifton Private Finance for Your Spanish Investment

Buying an investment property in Spain that’s as much as 40% cheaper than a UK equivalent is within your grasp. Whether you are planning on a holiday home, a long-term rental investment, or a quick buy-and-flip, Clifton Private Finance can get the funding you need. Together, we will:

• Develop a comprehensive funding package that can utilise assets both in the UK and abroad for effective security.
• Research the full field of lenders, both in the UK and Spain, to capitalise on the best deals.
• Establish a watertight exit strategy, based on either the eventual property sale or solid long-term refinancing.
• Ensure stability of the finance product, with flexibility that considers potential issues during the project.
• Obtain a deal that offers up to 100% LTV.
• Put funding in place as quickly as possible, to give cash-buyer status at auctions or for off-market property.
• Smooth all paperwork to minimise delays.

If you’re wanting to move professionally and seriously into Spanish property investment, Clifton Private Finance are the perfect partner to navigate the complexities and provide the maximum funding - speak to our expert team today.

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