Mortgages with Costs Included: Your Consumer Rights

One of the most in-demand services at our mortgage attorney in Seville is advisory on the various options available regarding mortgage loans.

Currently, banks and savings institutions offer a wide variety of mortgage products, and it is necessary to know and analyze them in detail in order to decide which one is most suitable for us.

One of the mortgage loans we can access is what is known as a mortgage with included costs.

What is a mortgage with included costs?

During the real estate boom, banks and savings institutions launched all kinds of mortgage products to attract the thousands of prospective buyers seeking a mortgage loan.

One of the most widely marketed products was the mortgage with included costs. This is a type of mortgage loan in which the full purchase price of the property to be acquired is offered — that is, 100% of its value — and, in addition, the costs inherent to the transaction could be added: registration fees, legal processing fees, etc. In some cases, the loan could even include an additional amount intended for other expenses related to home renovation, furnishings, etc.

Following the burst of the real estate bubble, this type of mortgage loan disappeared from the range of banking mortgage products. Among other things, the real estate bubble caused both banks and individuals to become much more cautious about applying for mortgages.

However, this apparent disappearance of 100%-plus-costs mortgages does not mean the product no longer exists. In certain cases, a bank or savings institution may still approve a mortgage loan with these characteristics.

How to obtain a 100% mortgage with included costs?

To obtain a mortgage loan covering the full purchase price of the property plus costs, it is necessary to apply to your bank and begin negotiations on the terms.

This is a type of mortgage that, due to its characteristics, is not granted to all applicants, so you will need to meet a series of specific requirements.

You should also keep in mind that these mortgages with included costs will have certain characteristics, typically involving longer amortization periods — meaning the repayment term may extend to 35 or 40 years.

This means monthly payments will be lower due to the extended repayment period. On the other hand, keep in mind that this will result in paying more interest overall.

It is also very common for this type of mortgage loan to be reserved only for properties owned by the bank itself. In this way, the bank promotes the sale of its own assets. The advantage of this is that you will very likely save on the cost of the appraisal, which will have already been carried out by the bank.

As a general rule, it is easy to assume that, since this is a higher-risk loan than a standard mortgage, the bank will require a series of additional guarantees:

• Solvency: applicants for this type of loan must demonstrate sufficient financial solvency to meet the loan payments. This means verifying strong employment stability and relatively high income levels.

If you do not provide sufficient guarantees regarding your solvency, the bank may request an additional guarantee. These guarantees typically involve either owning other properties or having a guarantor willing to be responsible on your behalf.

• Debt-free: to be considered sufficiently solvent, it will also be taken into account that you have no outstanding debts and that you are not listed in any credit default registries, such as ASNEF.
• Relationship with the bank: the granting of this type of mortgage is usually tied to the applicant taking out several additional banking products, such as home insurance, life insurance, etc.
• Bank-owned property: in almost all cases, the granting of this type of 100%-plus-costs loan is contingent on purchasing a property whose title belongs to the bank.

These are some of the requirements that the bank may impose in order to consider your application for a 100% mortgage.

Keep in mind that these requirements can vary significantly from one institution to another, and that additional conditions may also apply. Our recommendation, as specialist mortgage attorneys, is that you submit applications to several different banks and savings institutions to compare the terms offered by each.

It is important to bear in mind that, even if you meet all these requirements, the bank may still deny your application for this type of mortgage, as it is an extremely stringent type of loan and therefore granted in very few cases.

You may be offered an intermediate mortgage, in which the loan covers 100% of the property value but not the costs. In this situation, you will need to have saved the amount corresponding to the transaction costs and mortgage origination fees.

Advantages and disadvantages of 100% mortgages with included costs

Any banking product must be analyzed to understand all the characteristics and implications of taking it out. Each product offers a series of advantages and disadvantages that should be carefully considered before making a decision. It is of course more than advisable — practically essential — to request information from multiple institutions about the same product in order to choose the most suitable one.

As advantages we can highlight:

• You do not need significant savings to carry out the property purchase.
• In many cases, you will save on the appraisal cost, which can reach up to 400 euros, since this type of mortgage is usually granted for the purchase of a property owned by the bank.
• The amortization period is longer, potentially reaching 40 or even 50 years. This means the monthly loan payment will be lower, leaving you with more disposable income each month.
• VAT savings: most properties owned by banks tend to be second-hand homes. This means you will not have to pay VAT, but rather the Property Transfer Tax (ITP), which is a lower amount.

100%-plus-costs mortgages are not without disadvantages, which must also be taken into account.

• The level of debt with this type of mortgage is higher since you will pay more interest. The loan amount is 100% of the property value, to which costs must be added. This increases the loan amount and therefore the interest you will ultimately pay on it.
• Tied products: the products the bank will require you to take out as a condition for granting the loan will be several. These products are sometimes more expensive than similar products from other providers — for example, insurance policies.
• Limited variety: since most of these mortgages are only granted when purchasing a bank-owned property, you will have fewer choices when it comes to available properties. Furthermore, the prices of these properties are sometimes somewhat higher compared to average market prices for similar properties sold by private individuals.

Obtaining a 100%-plus-costs mortgage is possible, though quite challenging. In any case, if you are seeking a mortgage loan, we recommend contacting our mortgage attorney in Seville, who will provide specialized advice on the best available options.

Frequently asked questions about 100% mortgages with included costs

Is it possible to obtain a 100%-plus-costs mortgage in 2026?

Yes, although it is more difficult than before the real estate crisis. Currently, some banks still grant 100%-plus-costs mortgages, especially for the purchase of properties owned by the bank itself. There are also financing lines with ICO guarantees for young people under 35 that can facilitate access to this type of mortgage. However, the solvency and tied-product requirements tend to be stricter than for a conventional mortgage.

What costs are included in a mortgage with included costs?

A mortgage with included costs can cover, in addition to 100% of the property value, the following items: notary fees, Land Registry fees, legal processing fees, the Stamp Duty (AJD), and in some cases, renovation or furnishing costs. It is important to analyze each bank’s offer in detail, as the costs included in the mortgage vary significantly from one institution to another.

Which banks offer 100% mortgages?

Currently, there is no fixed list of banks that grant 100% mortgages. Approval depends on the applicant’s profile, the property, and the commercial policy of each institution at any given time. The institutions that tend to offer 100% financing are those with a portfolio of their own properties they wish to sell. We recommend consulting with a mortgage attorney who can advise you on the best available options and negotiate the terms on your behalf.

Can I buy a property with no down payment using a 100% mortgage?

Yes, that is precisely the main advantage of a 100% mortgage: it allows you to purchase a home without needing prior savings for a down payment. However, keep in mind that if the mortgage does not include transaction costs, you will need approximately 10–12% of the property value to cover taxes, notary, registry, and legal processing fees. Only a 100%-plus-costs mortgage would allow you to purchase with no upfront outlay whatsoever.

What risks does a 100 percent plus expenses mortgage carry?

The main risks of a 100 percent plus expenses mortgage are: higher total indebtedness (you will pay more interest over the long term), longer amortization periods (up to 40-50 years), obligation to take out bank-linked products (insurance, pension plans), and the risk of falling into negative equity if the property value drops. It is essential to seek specialized legal advice before signing.