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Mortgages in Gibraltar

A guide to getting a mortgage in Gibraltar and where to get the right advice about buying property there.

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 18, 2021

If you like the sunny side of life, Gibraltar may be top on your list for purchasing a property. Banking is one of the foundations of Gibraltar’s economy and many international banks hold offices in the country; the legal system is also similar to the UK’s.

This makes the process of buying a property in Gibraltar similar to the UK’s and there aren’t many additional restrictions for foreign nationals. But there are a few legalities you’ll need to be clued up on before you make a Gibraltar purchase.

Getting a mortgage in Gibraltar

Here are some of the important legalities you should know before you get a mortgage in Gibraltar: if you don’t have a Gibraltar work permit or residency, you’ll have to apply to purchase the property through the local government before you get a mortgage.

Buyers are required to view the property before they decide to purchase, and a reservation fee of 2% must be deposited while the sale is underway. This fee is refunded once the sale is complete. Property deeds will need to be registered with the Gibraltar Supreme Court.

There are also some additional fees to consider before buying a property in Gibraltar…

  • Stamp duty fee – this amount to a charge of 1.26% of the property purchase price plus 0.13% for the mortgage.
  • Supreme Court registration fee & Land Titles Registry fee
  • Legal costs – finding a lawyer in Gibraltar

It’s best to get independent advice from an expert mortgage broker before you take out a mortgage. They’ll be able to guide you through the legal requirements, extra fees, and show you if there are any tax breaks you’re eligible for. Make an enquiry and we can connect you to a broker with specialist Gibraltar mortgage expert.

Thankfully, as Gibraltar is a UK overseas territory, the currency used it still sterling.

Expat mortgage in Gibraltar

If you are looking to get a mortgage as an expat in Gibraltar and you already have a residency or work permit, the mortgage application process will be straightforward.

Once you’ve found your ideal home, you’ll need to work through a lawyer who can help you with the details of the legal paperwork. The seller’s lawyers will write up a purchase agreement which includes terms and conditions of sale and will pass this on to your lawyer for approval.

To finance your Gibraltar property there are UK lenders who offer bespoke mortgages designed for clients based in Gibraltar. Online Mortgage Advisor works with mortgage brokers who are experts in helping expats and foreign nationals find and secure Gibraltar mortgages. Give us a call on 0808 189 2301 or make an enquiry and we’ll connect you to the right broker for your situation.

Gibraltar mortgage interest relief

You may be wondering if you are eligible for any tax relief on your Gibraltar mortgage interest. Mortgage interest relief is allowed for loans taken out to purchase a Gibraltar residential property that’s occupied by the taxpayer up to a maximum loan limit of £350,000.

Gibraltar mortgage lenders

Many UK lenders and building societies have ongoing commitments to service the Gibraltar market: High Street banks such as Barclays and Natwest offer international or offshore bespoke Gibraltar mortgages.

To find a lender for your Gibraltar mortgage, you will need to search the whole market and compare interest rates. However, each provider has their own tariff of charges, valuation fees, and terms and conditions. Understanding the details of these terms can be complex and time consuming.

How much could I borrow for my Gibraltar mortgage?

Many banks will also have their own online calculators for getting an international Gibraltar mortgage. These calculators base the outcome on your income, outgoings, and the value of the property you want to purchase.

Affordability for a Gibraltar mortgage is similar to mainland UK mortgages and uses income multiples, for example;

Total income after deductions multiple applied…

  • Up to £50,000 … 3.75 + 1 or 2.75 x joint,
  • £50,001 – £75,000 … 3.75 + 1 or 2.80 x joint
  • £75,001 and above … 4 + 1 or 2.90 x joint.

Income multiples are increased by 0.5 on repayment mortgages for 5 year fixed rates.

However, bear in mind that these calculators will only give you a rough idea and they don’t show how their terms and interest rates compare to those of other providers. For best results work through a specialist mortgage broker who will know how to quickly compare interest rates and take you directly to your best deal. Make an enquiry and we’ll connect you to one.

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Can I get 100% LTV mortgages in Gibraltar?

In a nutshell, no. At least not directly. The maximum loan to value for purchase or re-mortgage is 80%.

If, however, you had additional security such as another property that you may be able to use this.

Speak to an expert advisor about Gibraltar mortgages today

If you’re wondering how to find a good mortgage for your Gibraltar property, speak to an expert mortgage broker. Online Mortgage Advisor works with brokers who have helped dozens of expats and foreign nationals secure their best Gibraltar mortgage.

The brokers we with work know where to find the most attractive interest rates and loan terms.

Give us a call on 0808 189 2301 or make an enquiry online. We don’t charge a fee for connecting you to the right broker for your situation – you’ll get professional guidance without any further obligation or marks to your credit rating.

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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