Mortgages, student loans and credit history at home while in Spain

Key rules

• UK student loan notice: Tell the Student Loans Company before you leave or within 28 days of moving abroad.
• Mortgage consent: Get your lender's written consent before you live abroad or let your home, or you break your mortgage terms.
• Credit files: Your UK or US credit file stays at home and does not move to Spain.
• Foreign judgments: A home-country judgment must be recognised by a Spanish court before it can be enforced against you in Spain.
• US loans: Keep your servicer updated with your Spanish contact details, and ask about deferment or forbearance before you miss payments.

Your debts keep running after you move

Moving to Spain does not pause a mortgage or a student loan. Your home lender or loan servicer still expects payment, and your home credit file stays in your home country. It does not transfer to Spain. Set up how you will pay before you leave, then keep it working.

The timeline and checklist below list the steps in order. This page explains what sits behind them.

Mortgage on a home you keep

Many UK and US residential mortgages require you to live in the property. If you move abroad, you usually need your lender's consent. Ask for it in writing before you go.

• If you plan to let the home out, you need consent to let. Letting without consent breaks your mortgage terms.
• Your lender may ask you to switch to a buy-to-let or expat mortgage. It may also change your rate or product, and it usually charges a fee.
• Consent to let is commonly granted for a limited period, often 12 months or more. Put the renewal date in your diary.
• UK lenders often limit lending to residents of certain countries. Spain is generally accepted, but confirm this with your lender.

Terms differ from lender to lender, so get the answers in writing.

UK student loans

Tell the Student Loans Company before you leave or within 28 days of moving abroad.

Each year you then complete an overseas income assessment form and send evidence of your income. You keep repaying while abroad. The rate is the same as in the UK: 9% of income above the plan threshold for Plans 1, 2 and 4, or 6% for the postgraduate loan. For overseas borrowers the threshold is adjusted by a country-specific uplift, and Spain has a threshold adjusted for cost of living. Thresholds change every April, so check the current figure with the Student Loans Company.

You pay by direct debit or by international payment. If you do not send the form or answer notices, the company can estimate your repayments, add charges and start enforcement.

US federal student loans

Your obligation continues in Spain. Give your servicer your Spanish address, phone number and email, and keep them up to date. You can pay online, by international wire or by bank debit.

• Income-driven plans are open to borrowers abroad. You must recertify your income and family size every year.
• If you cannot afford payments, ask your servicer about deferment or forbearance. You must be eligible, and you have to request it.
• If you miss payments for about 270 days, the loan goes into default. That can lead to collection, Treasury offset and wage garnishment.

Repayment plans have been changing under recent US legislation. Check the current options on the official federal student aid website before you choose a plan.

Can home creditors reach you in Spain?

Yes, but not instantly. A court judgment from your home country must first be recognised by a Spanish court.

• EU judgments are enforceable in Spain without a separate declaration. The creditor presents the judgment and a certificate to the Spanish court, and you can resist only on narrow grounds.
• UK judgments are no longer covered by the EU rules since Brexit. Recognition now depends on international conventions or a formal recognition procedure in Spain.
• US judgments have no treaty. They go through a formal recognition procedure, which needs a final judgment, proper service, no conflict with Spanish public policy and reciprocity.

Once a judgment is recognised, Spanish enforcement can attach bank accounts, wages above the minimum wage and property. Treaty coverage and procedure differ by country and type of claim. If you receive a claim or judgment, see a Spanish lawyer (abogado).

Credit history: home and Spain

Unpaid home debts are not automatically visible in Spanish credit records. They do damage your home credit file, and they can block you from borrowing at home later.

At home, an unused file ages, and a thin or dormant file can lower your score. Keep one card or credit line active and paid on time.

In Spain you start with no history. Spanish records include the CIRBE, which lists your loans, and ASNEF, a list of unpaid debts. To build history, open a Spanish bank account, get a card and take small credit that you repay on time. Some firms offer cross-border credit history services.

Timeline and deadlines

• Ask your mortgage lender for consent to let or to live abroad: before you leave

• Give your US loan servicer your Spanish address, phone and email: as soon as you have a Spanish address

• Complete the overseas income assessment form with evidence of income (UK student loans): every year

• Recertify your income and family size (US income-driven plans): every year

• Renew consent to let with your lender: when the consent period ends, often 12 months or more after it starts

Checklist

• Set up a direct debit or international payment for your UK student loan repayments.

• Give your US loan servicer your Spanish address, phone and email.

• Choose how to pay your US loan from Spain: online, international wire or bank debit.

• Ask your US servicer about income-driven plans, deferment or forbearance if you cannot afford payments.

• Ask your mortgage lender for written consent before you move abroad or let the property out.

• Keep one home-country card or credit line active and paid so your credit file does not go dormant.

• Ask a Spanish lawyer (abogado) for advice if a home-country creditor sends you a court judgment.

What to watch out for

• Home creditors can still reach you in Spain: A home-country creditor can pursue you in Spain once a Spanish court recognises their judgment. Then they can attach your bank accounts, wages above the minimum wage and property. Do not ignore letters or court papers from home. Contact the creditor early to agree a repayment plan, and ask a Spanish lawyer (abogado) if a judgment arrives.

• Unpaid debts damage your home credit file: Unpaid foreign debts are not automatically visible in Spanish credit files, but they stay on your UK or US file and can block credit at home. Keep paying home debts, and keep one home credit line active and paid.

• Missed loan notices lead to estimated repayments and default: If you do not tell the UK Student Loans Company you have moved, it can set an estimated repayment and add charges. A US federal loan goes into default after about 270 days of missed payments. Tell your loan provider your new address and income details, and ask about deferment or a lower plan before you fall behind.

• Letting your home without lender consent breaks your mortgage terms: Many mortgages require you to live in the property, and letting it out without consent breaches the terms. Ask your lender for consent to let before you leave, and expect a fee or a change of product.

Frequently asked questions

Can a UK court judgment be enforced against me in Spain?

Yes, but only after a Spanish court recognises it, because UK judgments are no longer covered by the EU rules since Brexit. Recognition goes through a court procedure called exequatur, or through a Hague convention if your case falls under one. A Spanish lawyer (abogado) can tell you which route applies.

What happens if I stop paying my US federal student loan while living in Spain?

Your loan goes into default after about 270 days of missed payments, and the lender can then collect through Treasury offset and wage garnishment. Contact your servicer before that point and ask about deferment, forbearance or an income-driven plan.

Do unpaid home-country debts show up on my Spanish credit record?

No, unpaid foreign debts do not automatically appear in Spanish credit files. They can still damage your UK or US credit file and block new credit at home. Spanish records, such as the Bank of Spain's loan register (CIRBE) and default lists like ASNEF, only cover debts owed in Spain.

How do I build a credit history in Spain as a new arrival?

Start with a Spanish bank account, then add a card and a small line of credit, because you arrive with no Spanish history.