Many people arrive in Spain with enough "cash" to purchase a property outright, either they have sold a property in their own country or have inherited money from family, but some people need to take out a Spanish mortgage or hipoteca as it is known here. Whether you want to buy a finca, a holiday apartment or a new villa in Spain, getting a Spanish mortgage may be the right solution for you.
Generally interest rates in Spain are much lower than in the rest of Europe, and there is a lot of competition between Spanish banks.
Never accept the first offer. Ask for a copy of one bank's offer and then take it to a different bank to see if they can improve the offer - this often happens. Then take the better offer back to the original bank - you may get a pleasant surprise.
You will be expected to prove ability to pay (i.e. wage slips from the last 3 months and bank statements of the last 6 months or, if you are self-employed, copies of your last 3 years accounts (officially stamped) copies of your last 12 month's business bank statements and your last 6 months personal bank statements. Proof of payment based on your ability to pay with income received from renting the property will not be taken into account by Spanish banks.