Owner financing — how British buyers get there.

The first British-buyer question: "How do I finance this?". Short answer — not via a UK bank, not via a CR bank. Owner financing — a promissory note signed directly with the seller — is the primary channel, and it works well if structured correctly.

Why UK banks won't lend

HSBC, Barclays, NatWest, Lloyds, Santander UK — none write mortgages on overseas property outside the EU/UK. Structural reasons: can't register a charge at a foreign land registry, can't value a property they can't inspect, no infrastructure for cross-border foreclosure. Even private-banking customers get a "no".

Some offer Lombard loans against UK assets — not mortgages on the CR property, but personal credit lines secured against UK collateral. Higher rates, shorter terms, full UK collateral required.

Why CR banks rarely lend

BAC, BCR, Banco Nacional lend mostly to residents with DIMEX + local credit history. Even with Inversionista residency, 6-12 months of local credit history is needed — and terms are less attractive than owner financing.

How owner financing works

The seller becomes your bank. 20-40% deposit at closing; seller carries the balance as a promissory note you repay monthly over 5-15 years. The note registers as a hipoteca (mortgage) at the National Registry on the same day title transfers.

Title becomes yours on closing day — not at the end of the term. Seller holds the registered mortgage as security, just like a UK bank would.

Typical structure

Worked example

£500K property in Santa Teresa. 30% deposit (£150K), 70% financed at 6% fixed over 7 years. Monthly payment ≈ £5,100. No early redemption penalty.