Getting a Mortgage in Gibraltar

If you like the sunny side of life, Gibraltar may be a top choice 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 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 purchase in Gibraltar.

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 additional fees to consider before buying a property in Gibraltar…

• Stamp duty fee: This is 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 and 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 a specialist Gibraltar mortgage expert.

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

Expat mortgage in Gibraltar

The mortgage application process will be straightforward if you want to get a mortgage as an expat in Gibraltar and already have a residency or work permit.

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

To finance your Gibraltar property, UK lenders 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 at 0330 818 7026 or make an enquiry, and we’ll connect you to the right broker for your situation.

Gibraltar mortgage interest relief

You may wonder if you are eligible for tax relief on your Gibraltar mortgage interest. Mortgage interest relief is allowed for loans taken out to purchase a Gibraltar residential property 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 must search the whole market and compare interest rates. However, each provider has its 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 also offer online calculators for getting an international Gibraltar mortgage. These calculators base the outcome on your income, outgoings, and the property value 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, remember that these calculators will only give you a rough idea and don’t show how their terms and interest rates compare to those of other providers. Work with a specialist mortgage broker who can quickly compare interest rates and take you directly to your best deal for the best results. Make an enquiry, and we’ll connect you to one.

Can I get 100% LTV mortgages in Gibraltar?

In a nutshell, no—at least not directly. The maximum loan-to-value for purchase or remortgage is 80%.

However, if you had additional security, such as another property, 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 broker. Online Mortgage Advisor works with brokers who have helped dozens of expats and foreign nationals secure their best Gibraltar mortgage.

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

Give us a call on 0330 818 7026 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.