Mortgages Gibraltar

To apply for a mortgage, lenders will require a clear set of documents to verify your identity, income, affordability, and the source of your deposit. The exact requirements may vary slightly between lenders, but the core documentation is broadly consistent. Preparing these documents in advance helps speed up underwriting and reduces delays once your application is submitted.

Identity and Address

Valid passport or driving licence as photographic identification.

Recent proof of address, such as a utility bill or bank statement dated within the last three months.

In some cases, a second form of identification may be requested.

Proof of Income

Latest three months’ payslips if employed.

Employment contract or letter confirming salary and position.

If self-employed, two to three years of tax returns and business accounts.

Financial Position

Six months of recent bank statements showing income and regular spending.

Details of any existing loans, credit cards, or financial commitments.

Evidence of savings and confirmation of where your deposit funds have come from.

Lenders use this documentation to assess affordability, confirm financial stability, and ensure compliance with regulatory requirements before issuing a formal mortgage offer.

A mortgage broker is a qualified intermediary who helps you secure a mortgage by comparing products across multiple lenders rather than offering loans from a single bank. Instead of applying directly to one institution, a broker reviews your income, deposit, credit profile, and property goals, then identifies which lenders are most likely to approve your application and on what terms. In Gibraltar, where criteria can vary depending on residency status, employment type, and loan-to-value ratio, a broker can add real value by understanding which banks are more flexible in specific scenarios. Brokers also assist with packaging your application correctly, ensuring documentation is complete, and managing communication with the lender during underwriting. Some brokers charge a client fee, which may range from a few hundred pounds to around 1% of the loan amount, while others are paid commission by the lender upon completion.

Brokers compare multiple lenders rather than offering one bank’s products.

They assess affordability and match you to suitable mortgage options.

Particularly helpful for non-residents, self-employed, or buy-to-let cases.

May charge a fee or receive commission from the lender.

Can streamline paperwork and reduce delays during underwriting.

Yes. In addition to working with traditional mortgage lenders and independent mortgage brokers, we can also engage with specialist finance companies where a more tailored solution is required. This is particularly relevant in Gibraltar where some cases fall outside standard high street lending criteria, such as complex income structures, self-employed applicants, investment purchases, equity release, bridging finance, or second charge lending.

Traditional banks tend to operate within clearly defined underwriting rules around loan-to-value ratios, income multiples, and credit history. Finance companies, by contrast, may offer more flexible structures, shorter-term funding, or specialist products designed for property investors, developers, or borrowers needing faster completion. For example, bridging finance can sometimes be arranged within weeks rather than the 4 to 6 week timeframe typical of a standard residential mortgage, although rates are usually higher to reflect the short-term nature of the loan.

Working with both banks and specialist finance providers means we can assess the full picture before recommending a route. In some situations, a standard residential mortgage will provide the most cost-effective solution. In others, a structured property loan, second charge mortgage, or short-term facility may be more appropriate, particularly where timing or complexity is a factor.

What This Means for You

Access to both traditional banks and specialist finance providers.

Broader lending options for complex or non-standard cases.

Ability to structure second mortgages, property loans, and refinancing solutions.

Clear comparison between cost, flexibility, and speed of funding.

Transparent explanation of fees, rates, and long-term implications before you proceed.

A mortgage lender is a bank or financial institution that provides the actual funds used to purchase a property. When you take out a mortgage, the lender lends you the money required to buy the property, and in return, they register a legal charge against it. This means the property acts as security for the loan until it is fully repaid.

In simple terms, the lender is the organisation that provides the capital. They assess your application, carry out affordability checks, review your credit history, value the property, set the interest rate, and determine the repayment terms. If your application is approved, the lender transfers the mortgage funds to your solicitor at completion, allowing the property purchase to proceed.

Mortgage lenders can include high street banks, international banks, or specialist finance providers. Each lender has its own criteria relating to income, deposit size, loan-to-value limits, age restrictions, and acceptable property types. For example, one lender may offer up to 80% loan-to-value for residents, while another may cap lending at 70% for non-residents.

It is important to understand that a mortgage lender is different from a mortgage broker. The lender provides the money, while a broker helps you find and apply for the right lender’s product.

Key Points to Remember

A mortgage lender provides the funds to purchase the property.

The property is used as security for the loan.

The lender sets the interest rate and repayment terms.

Lenders assess affordability, credit history, and property value.

A broker introduces you to lenders, but does not lend the money themselves.

Yes, professional mortgage advisers can assist not only with standard residential mortgages, but also with property loans and second mortgages, depending on your circumstances and objectives. These types of lending are commonly used by homeowners who already own property in Gibraltar and want to access additional funds without selling their home. Whether you are looking to release equity for renovations, consolidate higher-interest debt, invest in another property, or support a business venture, structured property lending solutions may be available.

A second mortgage, also known as a second charge loan, allows you to borrow additional funds secured against your existing property while keeping your original mortgage in place. This means your first lender remains in position, and a second lender takes a secondary charge. The amount you can borrow will depend on the equity in your property and your affordability. For example, if your property is valued at £600,000 and your existing mortgage balance is £300,000, you may have up to £300,000 in equity. A lender may allow you to borrow a portion of that equity, subject to affordability and overall loan-to-value limits.

A property loan can refer more broadly to borrowing secured against property, which may include remortgaging to release equity, bridging finance for short-term needs, or structured lending for investment purchases. Interest rates on second mortgages are often higher than first charge mortgages because the lender takes on additional risk, and affordability assessments remain strict. Lenders will review your income, commitments, credit history, and the current value of the property before approving additional borrowing.

Key Points to Consider

Second mortgages allow you to raise funds without replacing your existing mortgage.

Equity is calculated as property value minus current mortgage balance.

Interest rates on second charge loans are usually higher than standard mortgages.

Affordability and credit checks still apply.

Remortgaging may sometimes be cheaper than taking a second mortgage, depending on your rate and early repayment charges.

In Gibraltar, the amount you can borrow is primarily driven by affordability, not just the property price. Lenders typically assess your application by reviewing your income, committed monthly outgoings, and overall financial conduct, then applying internal affordability models and stress tests. As a practical rule of thumb, many buyers find borrowing often sits around 3.5 to 4.5 times annual income, but the final figure depends on your commitments and the lender’s assessment of risk. For example, if a household earns £140,000 per year, an indicative borrowing range might fall between £490,000 and £630,000, assuming minimal debts and stable employment. Lenders will also factor in fixed costs like loans, credit cards, car finance, childcare, and any ongoing obligations, because these reduce your available monthly surplus. Gibraltar-focused guidance also notes that lenders typically prefer a credit score around 650+, and a stronger profile can make approvals and terms more achievable.

Indicative borrowing is often discussed as 3.5 to 4.5 times annual income, but affordability is the final decider.

Existing commitments reduce borrowing power, even where income is strong.

A credit score around 650+ is commonly referenced as preferred by lenders.

Deposit requirement in Gibraltar usually depends on whether you are buying as a resident, non-resident, or investor. Market guidance commonly points to 20% to 30% deposits for non-residents, which equates to 70% to 80% LTV, while residents may access higher LTV options depending on profile and lender appetite. For a simple illustration, on a £500,000 property, a 20% deposit is £100,000, and a 30% deposit is £150,000. For buy-to-let, deposit expectations are typically higher. Gibraltar International Bank, for example, states a minimum 50% deposit for buy-to-let and requires rental income to cover at least 145% of the mortgage repayment. Higher deposits can also improve product choice and reduce the risk of issues if the lender valuation comes in lower than the agreed purchase price.

Non-resident deposits are commonly quoted at 20% to 30%.

£500,000 purchase example: £100,000 (20%) or £150,000 (30%) deposit.

Buy-to-let example: minimum 50% deposit and 145% rental coverage stated by GIB.

Larger deposits generally improve lender confidence and may support better terms.

Yes, Gibraltar mortgages are available to residents and, in many cases, to non-residents and expats, but terms vary. Gibraltar guidance aimed at buyers commonly notes that non-residents can obtain mortgages, though lenders usually require a larger deposit, and may cap LTV more conservatively than for residents. As a broad example, resident buyers may access up to around 80% LTV, whereas non-residents are often limited closer to 70% LTV, depending on lender and profile. Lenders will typically take a more cautious approach where income is overseas, where there is currency exposure, or where credit data is harder to verify. Practically, non-resident applicants should expect additional checks, more documentation, and a greater focus on deposit strength and the traceability of funds.

Non-residents can apply, but deposit and LTV expectations are usually stricter.

Guidance commonly references residents accessing up to 80% LTV, with non-residents often closer to 70%.

Overseas income can trigger deeper verification and risk assessment.

A strong, traceable deposit is especially important for expats and foreign buyers.

Most Gibraltar lenders will ask for a complete pack that proves identity, address, affordability, and source of deposit funds. Typical documentation includes valid photo ID, proof of address, evidence of income, and a run of bank statements to show salary credits and general account conduct. Gibraltar International Bank’s buy-to-let guidance is especially clear and lists items such as 3 months’ payslips, an employment contract or tax returns, 6 months’ bank statements for all active accounts, and proof of savings and rental income evidence where relevant. Property details are also needed, such as the purchase agreement and address, because lenders must assess the property as security and instruct a valuation as part of underwriting. Submitting documents in one clean, consistent bundle is one of the simplest ways to reduce delays.

Photo ID and proof of address are standard starting requirements.

Income evidence often includes 3 months’ payslips and contract or tax returns (self-employed).

6 months’ bank statements are commonly requested, especially for active accounts.

Deposit proof and, where applicable, rental income evidence for buy-to-let.

A typical Gibraltar mortgage timeline is often quoted at around 4 to 6 weeks from full submission to approval, assuming documentation is complete and valuation and legal steps run smoothly. Gibraltar property guidance aimed at buyers frequently references this 4 to 6 week window, noting that delays usually come from incomplete paperwork, follow-up questions on deposit source, valuation timing, or conveyancing progress. If you organise your documentation early, respond quickly to underwriting questions, and instruct a solicitor promptly, you can often avoid unnecessary back-and-forth. It is also worth remembering that lenders will not usually move to final approval until the valuation has been completed and reviewed, so building in some breathing space around surveyor availability is sensible.

Mortgage approval is commonly quoted at 4 to 6 weeks, depending on documentation and valuation.

A well-prepared document pack is one of the biggest speed drivers.

Valuation timing and legal conveyancing often influence the overall timeline.

Quick responses to lender queries can materially reduce delays.

In Gibraltar, as in the UK, mortgage interest rates generally fall into three main categories: fixed, variable, and tracker rates. Each option has different implications for stability, cost and risk, and the correct choice depends on your personal circumstances, financial risk appetite and expectations for future interest rate movements.

Fixed Rate Mortgages: The interest rate is locked in for a set period (commonly 2, 3 or 5 years), meaning monthly repayments will stay the same during that period regardless of market movements. This provides payment certainty, making budgeting easier. For example, a 5-year fixed rate might be around 4.50% to 5.20% (depending on lender and profile), so a £300,000 loan at 4.8% over 25 years would have monthly repayments of approximately £1,698.

Variable Rate Mortgages: These move with the lender’s standard variable rate (SVR) and can go up or down with market conditions. They often start lower than fixed rates but can increase without warning, making budgeting less predictable.

Tracker Rate Mortgages: These are linked to an external benchmark such as the European or UK base rate plus a fixed margin (for example, ECB + 2%). They provide transparency because you know the margin, but like variable rates, payments can rise if the benchmark increases.

Choosing the best option depends on your tolerance for rate changes, likelihood of moving property within a fixed period, and whether stability or potential savings is more important to you.

Fixed rates provide payment certainty over the selected term.

Variable and tracker rates can result in lower initial payments but carry rate risk.

Your choice should align with your budget stability needs and economic outlook.

Early repayment charges and exit fees differ between product types and must be considered.

Yes. Nearly all Gibraltar lenders will perform a credit check as part of their underwriting process. This enables them to see your repayment history, existing credit commitments, defaults, arrears and overall financial behaviour. A strong credit history increases your chance of approval and more favourable terms, while a weak or limited history may reduce options or lead to higher deposit requirements.

If your credit report shows issues such as missed payments, defaults, or high credit utilisation, lenders may take a more conservative view, requiring larger deposits, additional affordability buffers, or in some cases declining the application until credit improves. It is a common misconception that a perfect score is required, but lenders do look for consistency, responsible repayment behaviour, and evidence that debt obligations are managed well relative to income.

Credit checks are standard and inform lender risk assessments.

Adverse credit history may require larger deposit or stronger income evidence.

High debt levels relative to income can reduce borrowing capacity.

Overseas credit reports may be requested for non-resident applicants.

Yes, you can apply for a Mortgage in Principle, also called an Agreement in Principle or Decision in Principle, before you make an offer on a property, and it is one of the smartest early steps you can take. Think of it as a lender’s provisional view of what you may be able to borrow, based on the information you provide about income, outgoings, existing credit commitments, and your deposit position. It is not a binding offer and it is not a guarantee of funding, because the lender still needs to complete full underwriting, verify documents, and value the specific property you intend to buy. Even so, it carries real weight in the Gibraltar market because it signals to estate agents, developers, and sellers that you have already been through an initial affordability assessment and you are in a credible position to proceed.

That can help you move faster, reduce negotiation friction, and in some cases strengthen your offer against competing buyers who have not done the groundwork. It also gives you a clearer financial boundary while viewing properties, which helps prevent wasted time and disappointment later, particularly in a market where desirable homes can attract attention quickly.

In practical terms, an Agreement in Principle typically lasts around 30 to 90 days, depending on the lender’s policy, and it will state an indicative maximum loan amount. The lender may carry out a light assessment at this stage, sometimes including a soft credit check, and they will usually base the decision on the information you submit, so accuracy matters. If your circumstances change after it is issued, for example a job change, new credit commitments, a reduced deposit, or large unexplained transactions in your bank statements, the lender may revise the amount when you move to full application. Once you have an offer accepted on a property, the next step is a full mortgage application, where you will supply supporting documents, the lender will complete detailed underwriting, and a valuation will be instructed. If your Agreement in Principle expires before you find the right property, you should renew it promptly so you remain “finance-ready” and can act quickly when you need to.

An Agreement in Principle helps you shop within a realistic budget and reduces the risk of falling in love with an unaffordable property.

It strengthens your position with agents and sellers because it shows affordability has already been considered.

Most are valid for 30 to 90 days, and you should renew if it expires before you secure a property.

It is not a guarantee, final approval still depends on full checks, document verification, and a property valuation.

Keeping your finances stable after issue, and avoiding new debt, improves the chance that the final offer matches the initial indication.

Yes, it may still be possible to obtain a mortgage with bad credit, but approval will depend on the severity, age, and frequency of the issues on your credit record. Lenders assess risk carefully, and while minor missed payments from several years ago may have limited impact, more recent defaults, County Court Judgments, or high levels of unsecured debt can reduce your options. In Gibraltar, as in the UK, lenders focus on overall affordability, deposit strength, and financial stability alongside credit history. A larger deposit can significantly improve your chances, as it reduces the lender’s exposure and lowers the loan-to-value ratio. In some cases, specialist lenders or structured lending solutions may be considered where high street criteria cannot be met.

It is important to be transparent about your credit history from the outset. Attempting to hide issues will almost certainly lead to delays or decline once checks are completed. Improving your credit position before applying, such as reducing credit card balances, clearing outstanding defaults, or demonstrating a period of stable repayment behaviour, can materially strengthen your application.

Minor historic credit issues may still be acceptable to some lenders.

Larger deposits can improve approval chances where credit is weaker.

defaults or CCJs significantly reduce mainstream lender options.

Specialist lending routes may be available depending on circumstances.

Improving credit conduct before applying can enhance your prospects.