What is a Bridging Mortgage and When is it Worth Considering?

In Spain’s fast-moving property market—particularly along the Costa Blanca—it’s common for homeowners to want to buy a new home before selling their current one. This is where a bridging mortgage (hipoteca puente) becomes a valuable solution. But what exactly is it, how does it work, and who can apply?

What is a bridging mortgage?

A bridging mortgage is a short- to medium-term loan that allows you to finance the purchase of a new home while still owning your current property. In essence, the bank advances the money needed for the new purchase, using both the existing and the new property as collateral.

It’s called “bridging” because it acts as a financial bridge between selling your current home and buying the new one.

When is it used?

It’s typically requested when:

• You’ve found your ideal new home but haven’t sold the current one.

• You don’t want to lose a market opportunity due to lack of immediate funds.

• You’re relocating for work, family, or lifestyle reasons.

Requirements

While banks may differ, general conditions include:

• Sufficient income to cover both mortgages during the transition.

• A good credit history and financial stability.

• Valuation of both properties.

• A commitment to sell your current home within a set timeframe (typically 1–5 years).

• In some cases, proof of an interested buyer or realistic valuation may be required.

Payment terms

During the bridging period (usually 12–24 months):

• You may pay only the interest.

• Or opt for a reduced monthly instalment.

• Once the old home is sold, part or all of the debt is repaid, converting the loan into a traditional mortgage on the new home.

Pros

✅ Avoids temporary rentals after selling your current home.

✅ Lets you buy without rushing.

✅ Offers financial flexibility.

✅ Helps seize good market opportunities (e.g. new developments or high-demand areas).

Cons

❌ You temporarily hold two debts.

❌ Delays in selling can cause financial pressure.

❌ More complex than a standard mortgage.

❌ Higher interest rates or fees may apply.

For residents vs. non-residents in Spain

Yes, there are key differences:

Residents:

• Easier access and better conditions.

• Up to 80% financing of the new property’s value.

• Easier to prove income and credit history within Spain.

Non-residents:

• Typically limited to 60–70% financing.

• Foreign income is reviewed more strictly.

• Fewer banks offer this product, but international-focused lenders on the Costa Blanca may accommodate.

Key considerations

Before signing:

• Review all loan conditions (interest, term, commissions).

• Have a realistic sales strategy for your current home.

• Keep a financial cushion in case the sale takes longer.

• Get advice from property and legal professionals, especially if you’re a foreign buyer.

Are There Situations Where a Bank Will Not Offer a Bridging Mortgage?

Yes. Not all properties or buyer situations qualify for a bridging mortgage in Spain. Banks typically apply stricter criteria in the following cases:

• Rural or difficult-to-sell properties: Homes in remote areas, non-urban plots, or with limited market appeal are often excluded.

• Very old or unrenovated properties: If the property requires major repairs, the bank may not consider it as suitable collateral.

• Unregulated or illegal construction: Properties with unresolved legal or zoning issues (e.g. missing licenses) are usually rejected.

• Unstable financial profile: If the applicant has irregular income, high debt ratios, or is unable to prove affordability, the bank may deny the loan.

• No realistic plan to sell the current home: Without an appraisal or a buyer lined up, banks may see the bridging risk as too high.

• Non-residents without documentation: Foreign buyers without a NIE, tax declaration or verified income often face limitations.

Each bank has its own risk profile and policies, but in general, the more marketable and legally sound both properties are, the more likely the bank is to approve the bridging loan.

Conclusion

A bridging mortgage can be a smart way to move homes without financial stress, but it requires planning and support. At Costa Prime Properties, we help you not only find your next dream home but also connect you with trusted mortgage professionals—whether you’re a Spanish resident or an international buyer.

Thinking of relocating or upgrading?

Get in touch and we’ll guide you every step of the way.