{"id":3742,"date":"2026-11-09T18:26:19","date_gmt":"2026-11-09T18:26:19","guid":{"rendered":"https:\/\/joseselles.com\/bridging-mortgage-mallorca\/"},"modified":"2026-11-09T18:32:48","modified_gmt":"2026-11-09T18:32:48","slug":"bridging-mortgage-mallorca","status":"publish","type":"post","link":"https:\/\/joseselles.com\/en\/bridging-mortgage-mallorca\/","title":{"rendered":"Bridging Mortgage in Mallorca: How to Buy Your New Home Before Selling"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3742\" class=\"elementor elementor-3742 elementor-3730\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7844a985 e-flex e-con-boxed e-con e-parent\" data-id=\"7844a985\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1e141962 elementor-widget elementor-widget-text-editor\" data-id=\"1e141962\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What happens if I do not sell my home within the bridging mortgage period?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It depends on your contract, which is why it has to be in writing before you sign. The payment may switch to being calculated on the whole debt, which makes it much more expensive. If you see the sale slipping, talk to your lender before the period ends: it is easier to negotiate an extension in time than to deal with missed payments later.\"}},{\"@type\":\"Question\",\"name\":\"Can I get a bridging mortgage if my current home is already paid off?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, and it is the simplest case. Your mortgage-free home serves as additional security and sometimes makes it possible to finance more of the new house. When you sell it, you repay the agreed part. Even so, the lender will assess your income and value both homes.\"}},{\"@type\":\"Question\",\"name\":\"How much can I borrow with a bridging mortgage?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"There is no percentage set by law: each lender applies its own risk policy. What they look at is the combined value of the two homes, how much you owe in total and whether your income can carry the bridge payment. The property transfer tax and the purchase costs generally come out of your savings.\"}},{\"@type\":\"Question\",\"name\":\"Do I lose the income tax exemption if I buy before selling?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Not necessarily. The Spanish tax authorities accept reinvestment if you buy your new main home in the two years before selling the previous one. If you bought your home with a mortgage, what you need to reinvest is what you obtain from the sale (the price minus the costs and taxes of selling) minus the capital still outstanding, and everything you pay for the new house counts, including the financed part.\"}}]}<\/script>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-44ba05dc e-con-full e-flex e-con e-parent\" data-id=\"44ba05dc\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7dbbc8f0 elementor-widget elementor-widget-heading\" data-id=\"7dbbc8f0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\"><span style=\"color:#000000\">Bridging Mortgage in Mallorca: How to Buy Your New Home Before Selling<\/span><\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-253c7dba elementor-widget elementor-widget-image\" data-id=\"253c7dba\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/joseselles.com\/wp-content\/uploads\/2026\/11\/hipoteca-puente-mallorca-raw-1024x768.webp\" class=\"attachment-large size-large wp-image-3728\" alt=\"\" srcset=\"https:\/\/joseselles.com\/wp-content\/uploads\/2026\/11\/hipoteca-puente-mallorca-raw-1024x768.webp 1024w, https:\/\/joseselles.com\/wp-content\/uploads\/2026\/11\/hipoteca-puente-mallorca-raw-300x225.webp 300w, https:\/\/joseselles.com\/wp-content\/uploads\/2026\/11\/hipoteca-puente-mallorca-raw-768x576.webp 768w, https:\/\/joseselles.com\/wp-content\/uploads\/2026\/11\/hipoteca-puente-mallorca-raw.webp 1200w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-34be5f5 elementor-widget elementor-widget-text-editor\" data-id=\"34be5f5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"seo-tldr\">\n\n<p>A bridging mortgage finances the purchase of your new home while you still own your current one. When you sell, that money repays part of the loan, and the rest carries on as a normal mortgage on the new house. It is not a standard product: each lender decides whether to offer it, how long it gives you to sell and what you pay in the meantime. It also has two costs that hardly anyone factors in: in the Balearic Islands, if you still own your home (50% or more) when you buy, you lose the reduced property transfer tax for a main home, which in Mallorca applies to homes worth up to \u20ac331,859.70; and the part you repay when you sell may carry a fee.<\/p>\n\n\n<p>In Mallorca it is very common to find the house you want before you have sold your own. Good opportunities do not wait, and selling a flat in Palma at the right price can take months. A bridging mortgage exists for that gap, but it is not always the best way out. I will explain how it works, what it really costs and what alternatives you have.<\/p>\n\n<\/div>\n\n<h2 style=\"color:#000000;\">What a bridging mortgage is and how it works<\/h2>\n\n\n<p>It is a mortgage designed for moving home without selling first. The lender finances the new purchase and, as security, it may also take your current home, because it knows that selling it will repay part of the debt. If your current home has a mortgage, that debt can be folded into the deal.<\/p>\n\n\n<p>It works in two stages:<\/p>\n\n\n<ol>\n\n<li><strong>During the bridge<\/strong>, while you sell, you owe the new purchase plus whatever was left on the old one. Some lenders give you a few months&#8217; grace period, during which you pay interest only, so the monthly payment stays manageable.<\/li>\n\n\n<li><strong>When you sell<\/strong>, the money pays off the part of the loan you agreed with the lender, the charge on the sold home is released and the loan continues as a normal mortgage on the new one.<\/li>\n\n<\/ol>\n\n\n<p>There is no specific law for bridging mortgages in Spain: it is a mortgage like any other, with all the protections of <a href=\"https:\/\/www.boe.es\/buscar\/act.php?id=BOE-A-2019-3814\" target=\"_blank\" rel=\"noopener\">Law 5\/2019<\/a>. You receive the FEIN (the binding offer), the warnings sheet and the draft contract at least ten calendar days before signing, and you see the notary before completion. What varies from one lender to another is how long you have to sell, the payment during that period and what happens if it ends before you have sold.<\/p>\n\n\n<h2 style=\"color:#000000;\">When a bridging mortgage makes sense in Mallorca<\/h2>\n\n\n<p>It makes sense when three things happen at once:<\/p>\n\n\n<ul>\n\n<li><strong>You have found the house and it will not wait.<\/strong> If you have to sign the arras (the deposit contract) within weeks, there is no time to sell yours properly.<\/li>\n\n\n<li><strong>Your current home will sell, just not quickly.<\/strong> A realistic price and a sellable property, even if it takes a few months. If selling fast would mean a big price cut, the bridge may work out cheaper.<\/li>\n\n\n<li><strong>Your income can carry the bridge payment<\/strong>, and a delay in the sale as well. This is the first thing the lender will look at, because the law requires it to assess your creditworthiness before lending.<\/li>\n\n<\/ul>\n\n\n<p>It does not make sense if your home would only sell with a big price cut even given time, if the bridge payment leaves you with no margin, or if your current home has issues that could drag out the sale, such as charges, an inheritance not yet accepted or a pending licence.<\/p>\n\n\n<h2 style=\"color:#000000;\">A worked example: moving from a flat in Palma to a house<\/h2>\n\n\n<p>A family owns a flat in Palma worth \u20ac350,000, with \u20ac120,000 left on its mortgage, and \u20ac60,000 in savings. They find a house for \u20ac520,000 and want to buy it before selling. At an example rate of 3% over 30 years, and if the lender approves the deal:<\/p>\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Stage<\/th><th>Debt<\/th><th>Approximate monthly payment<\/th><\/tr><\/thead><tbody><tr><td>During the bridge, paying everything<\/td><td>\u20ac640,000 (\u20ac120,000 old debt plus \u20ac520,000 for the purchase)<\/td><td>about \u20ac2,700<\/td><\/tr><tr><td>During the bridge, with a grace period (interest only)<\/td><td>\u20ac640,000<\/td><td>about \u20ac1,600<\/td><\/tr><tr><td>After selling the flat and repaying \u20ac350,000<\/td><td>\u20ac290,000<\/td><td>about \u20ac1,220<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n<p>Together the two homes are worth \u20ac870,000, so during the bridge the debt is 74% of the value securing it. The \u20ac60,000 of savings pays the property transfer tax on the new house (if it is a resale property), about \u20ac42,800 in the Balearic Islands, which is not normally included in the mortgage, plus the purchase costs. If the flat sells for less or takes longer than planned, the high payment lasts longer and the final debt is larger: that is why the numbers should be run with a cautious sale price.<\/p>\n\n\n<h2 style=\"color:#000000;\">What a bridging mortgage costs (and what almost nobody calculates)<\/h2>\n\n\n<p>On top of the interest, check these five costs before signing:<\/p>\n\n\n<ul>\n\n<li><strong>The valuations.<\/strong> If the lender takes both homes as security, it will value both, and the client pays for valuations under <a href=\"https:\/\/www.boe.es\/buscar\/act.php?id=BOE-A-2019-3814#ar-14\" target=\"_blank\" rel=\"noopener\">article 14.1.e of Law 5\/2019<\/a>. The notary, the Land Registry, the gestor\u00eda and the stamp duty on the mortgage deed are paid by the lender.<\/li>\n\n\n<li><strong>The fee on the repayment from the sale.<\/strong> That repayment counts as early repayment and, depending on the contract, may carry a fee: on variable rates, at most 0.15% during the first five years or 0.25% during the first three; on fixed rates, 2% in the first ten years (<a href=\"https:\/\/www.boe.es\/buscar\/act.php?id=BOE-A-2019-3814#ar-23\" target=\"_blank\" rel=\"noopener\">art. 23<\/a>). On \u20ac350,000, 0.25% is \u20ac875 and 2% is \u20ac7,000. Ask for the FEIN to state expressly what fee that repayment carries: these are maximums and can be negotiated down.<\/li>\n\n\n<li><strong>Property transfer tax without the reduced rate.<\/strong> In the Balearic Islands, the reduced ITP (property transfer tax) for a main home requires that, when you buy, you do not own 50% or more of another home (<a href=\"https:\/\/www.boe.es\/buscar\/act.php?id=BOE-A-2014-6925#a1-2\" target=\"_blank\" rel=\"noopener\">art. 10.c of the Balearic consolidated tax law<\/a>). In Mallorca that reduced rate, 4% on the first \u20ac270,151.20, applies to homes worth up to \u20ac331,859.70. If you buy in that range with your home still unsold, you pay the general scale: 8% up to \u20ac400,000. Above that price you would pay the general scale anyway.<\/li>\n\n\n<li><strong>The ITP is paid before you sell.<\/strong> The form 600 self-assessment is filed and paid within one month of signing the purchase, according to the <a href=\"https:\/\/atib.es\/DescargaDocs\/Instrucciones600_es.pdf\" target=\"_blank\" rel=\"noopener\">Balearic Tax Agency (ATIB)<\/a>. That money has to be available even if your home is still on the market.<\/li>\n\n\n<li><strong>Insurance and tied products.<\/strong> If the offer lowers the rate in exchange for insurance, add it to the sums and compare the APR (TAE), not just the rate. More on this in <a href=\"\/en\/is-mortgage-life-insurance-mandatory\/\">is mortgage life insurance mandatory in Spain<\/a>.<\/li>\n\n<\/ul>\n\n\n<h2 style=\"color:#000000;\">Buying before selling and income tax on the sale<\/h2>\n\n\n<p>A common worry is whether buying first means losing the tax exemption for reinvesting in a main home. Not necessarily. The Spanish tax authorities accept that the new main home can be bought in the two years before or the two years after selling the previous one, so if you sell your flat within two years of buying the new house, the gain on the sale can be exempt (<a href=\"https:\/\/www.boe.es\/buscar\/act.php?id=BOE-A-2006-20764#a38\" target=\"_blank\" rel=\"noopener\">art. 38 of the Income Tax Act<\/a> and <a href=\"https:\/\/www.boe.es\/buscar\/act.php?id=BOE-A-2007-6820#a41\" target=\"_blank\" rel=\"noopener\">art. 41 of its Regulation<\/a>).<\/p>\n\n\n<p>With one nuance: if you bought your home with a mortgage, the amount that counts for reinvestment is what you obtain from the sale (the price minus the costs and taxes of selling that you pay) minus the capital still outstanding on that loan. And the tax authorities count everything you pay for the new house, even if part of it is financed with the loan. In the example, the amount to reinvest is at most \u20ac230,000 (\u20ac350,000 minus \u20ac120,000) and the new house costs \u20ac520,000: if both are your main home, the whole gain can be exempt. The taxes on the sale are explained in detail in the guide to <a href=\"\/en\/selling-a-property-with-a-mortgage-in-mallorca\/\">selling a property with a mortgage<\/a>.<\/p>\n\n\n<h2 style=\"color:#000000;\">The risks: what happens if you do not sell in time<\/h2>\n\n\n<p>The big risk with a bridging mortgage is that the sale takes longer than planned or goes for less:<\/p>\n\n\n<ul>\n\n<li><strong>If the period ends before you sell<\/strong>, the payment may switch to the full debt. Ask before signing, and get it in writing, how much you would pay and from when.<\/li>\n\n\n<li><strong>If you sell for less<\/strong>, the part you repay is smaller and the mortgage you are left with is bigger. Plan the bridge on a cautious sale price, not the one you would like.<\/li>\n\n\n<li><strong>If the rate is variable<\/strong>, the bridge payment moves with 12-month Euribor, which averaged 3.239% in October 2026, according to the <a href=\"https:\/\/www.boe.es\/diario_boe\/txt.php?id=BOE-A-2026-23168\" target=\"_blank\" rel=\"noopener\">Bank of Spain in the Official State Gazette<\/a>.<\/li>\n\n\n<li><strong>If both homes are mortgaged<\/strong>, the deed splits the debt between them and each is liable for its share: if you stop paying, you could lose either of them, and if selling them does not cover the debt, you are liable with the rest of your assets.<\/li>\n\n<\/ul>\n\n\n<h2 style=\"color:#000000;\">Alternatives to a bridging mortgage<\/h2>\n\n\n<p>Before deciding, compare it with these options:<\/p>\n\n\n<ul>\n\n<li><strong>Sell first and agree a later handover.<\/strong> The buyer signs and pays, and you stay in the house for a few months under a written agreement, or rent it back temporarily.<\/li>\n\n\n<li><strong>Arras with a long deadline.<\/strong> If the seller of the new house is in no hurry, a deposit contract of four to six months gives you time to sell yours calmly.<\/li>\n\n\n<li><strong>Two mortgages at once.<\/strong> Keep yours and take out a new one for the purchase. This only works if your income can bear both payments.<\/li>\n\n\n<li><strong>Fund the deposit with your current home.<\/strong> Extend your mortgage or take a loan secured on your home for the deposit on the new one, and repay it when you sell.<\/li>\n\n<\/ul>\n\n\n<p>If you are not going to sell your current home and the new one will not be your main home, it is no longer a bridge but a <a href=\"\/en\/second-home-mortgage-mallorca\/\">second home mortgage in Mallorca<\/a>, with different rules.<\/p>\n\n\n<h2 style=\"color:#000000;\">How I work on it with you<\/h2>\n\n\n<p>As a <a href=\"\/en\/mortgage-advisor\/\">mortgage broker in Mallorca<\/a>, I start with the numbers of your case: what your current home is really worth, how much you owe, how much you need for the new one including taxes and costs, and what payment you can sustain if the sale is delayed. With that, I put your application to several lenders, because not all of them do bridging mortgages or offer the same terms, and I explain each FEIN to you: time to sell, the payment during the bridge, the fee on the repayment and the APR. I do it as an appointed representative of OVB Allfinanz Espa\u00f1a, a real estate credit intermediary registered with the Bank of Spain (D087), and if your deal carries an intermediation fee, I tell you in writing before we start: it appears in the FEIN and is included in the APR. If you would like to look at your case, <a href=\"\/en\/contact\/\">book a free first meeting<\/a>. And if you are just starting out, the full process is in <a href=\"\/en\/how-to-get-a-mortgage-in-mallorca-step-by-step\/\">how to get a mortgage in Mallorca step by step<\/a>.<\/p>\n\n<div class=\"seo-faq\">\n<h2 style=\"color:#000000;\">FAQ \u2014 Bridging mortgages in Mallorca<\/h2>\n\n\n<h3 style=\"color:#000000;\">What happens if I do not sell my home within the bridging mortgage period?<\/h3>\n\n\n<p>It depends on your contract, which is why it has to be in writing before you sign. The payment may switch to being calculated on the whole debt, which makes it much more expensive. If you see the sale slipping, talk to your lender before the period ends: it is easier to negotiate an extension in time than to deal with missed payments later.<\/p>\n\n\n<h3 style=\"color:#000000;\">Can I get a bridging mortgage if my current home is already paid off?<\/h3>\n\n\n<p>Yes, and it is the simplest case. Your mortgage-free home serves as additional security and sometimes makes it possible to finance more of the new house. When you sell it, you repay the agreed part. Even so, the lender will assess your income and value both homes.<\/p>\n\n\n<h3 style=\"color:#000000;\">How much can I borrow with a bridging mortgage?<\/h3>\n\n\n<p>There is no percentage set by law: each lender applies its own risk policy. What they look at is the combined value of the two homes, how much you owe in total and whether your income can carry the bridge payment. The property transfer tax and the purchase costs generally come out of your savings.<\/p>\n\n\n<h3 style=\"color:#000000;\">Do I lose the income tax exemption if I buy before selling?<\/h3>\n\n\n<p>Not necessarily. The Spanish tax authorities accept reinvestment if you buy your new main home in the two years before selling the previous one. If you bought your home with a mortgage, what you need to reinvest is what you obtain from the sale (the price minus the costs and taxes of selling) minus the capital still outstanding, and everything you pay for the new house counts, including the financed part.<\/p>\n\n<\/div>\n\n<hr class=\"wp-block-separator\"\/>\n\n\n<p><em>This content is for information only and is up to date as of November 2026. The terms of a bridging mortgage are set by each lender: check the FEIN before signing.<\/em><\/p>\n\n\n\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>A bridging mortgage finances the purchase of your new home while you still own your current one. When you sell, that money repays part of the loan, and the rest carries on as a normal mortgage on the new house. It is not a standard product: each lender decides whether to offer it, how long [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3727,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_vx_contenido_v2":"","_vx_titulo_v2":"","_vx_descripcion_v2":"","_vx_seo_title_v2":"","_vx_faq_v2":"","_vx_imagen_v2":"","_vx_antes_301":"","_vx_tema":"","_vx_servicio":"","_joinchat":[],"footnotes":"","rank_math_title":"Bridging Mortgage in Mallorca: Buy Before You Sell (2026)","rank_math_description":"How a bridging mortgage works in Spain, what you pay while you sell and two costs almost nobody factors in on Mallorca: transfer tax and the repayment fee.","rank_math_focus_keyword":"bridging mortgage Mallorca","rank_math_canonical_url":"","rank_math_robots":[],"rank_math_facebook_image":"","rank_math_facebook_image_id":""},"categories":[25],"tags":[],"class_list":["post-3742","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/posts\/3742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/comments?post=3742"}],"version-history":[{"count":1,"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/posts\/3742\/revisions"}],"predecessor-version":[{"id":3743,"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/posts\/3742\/revisions\/3743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/media\/3727"}],"wp:attachment":[{"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/media?parent=3742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/categories?post=3742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/joseselles.com\/en\/wp-json\/wp\/v2\/tags?post=3742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}