Risk Statement
Last updated: February 2026
Property investment involves risk. The value of property and rental income can go down as well as up. Past performance is not a reliable indicator of future results. You should seek independent financial and legal advice before entering into any mortgage commitment.
1. Property Market Risk
Property values are subject to market fluctuations. Economic downturns, changes in local demand, or regulatory changes in the Spanish property market may cause the value of your property to decrease. A decline in property value may result in a loan-to-value (LTV) ratio exceeding the originally agreed threshold, which could trigger additional requirements or restrict refinancing options.
2. Rental Income Risk
Buy-to-let mortgages rely on rental income to service debt. Risks to rental income include:
- Void periods between tenancies
- Tenant default or non-payment
- Regulatory changes affecting rental prices (e.g., rent control legislation in certain Spanish regions)
- Changes in local rental demand
- Property maintenance costs reducing net rental yield
If rental income falls below the level required to meet your mortgage payments, you will be personally liable for the shortfall.
3. Interest Rate Risk
If your mortgage has a variable rate component (after any initial fixed-rate period), your monthly payments may increase if interest rates rise. You should ensure you can afford higher payments in a rising rate environment. We recommend stress-testing your affordability against rate increases of at least 2 percentage points.
4. Currency Risk
If your income is denominated in a currency other than euros, exchange rate fluctuations could affect your ability to service the mortgage. SodaBrothers mortgages are denominated in euros and all payments must be made in euros.
5. Regulatory and Tax Risk
Tax legislation and regulations affecting property ownership, rental income, and mortgage lending may change. This includes but is not limited to:
- Changes to Spanish income tax treatment of rental income
- New or increased property taxes (IBI, plusvalía)
- Changes to non-resident taxation rules
- Introduction of new landlord licensing or energy efficiency requirements
- Modifications to autonomous community transfer taxes (ITP) or stamp duty (AJD)
6. Repossession Risk
Your property is used as security for the mortgage. If you fail to make mortgage payments as agreed, SodaBrothers (or its assignees) may initiate enforcement proceedings, which could result in the sale of your property. Under Spanish law, if the sale proceeds do not cover the outstanding debt, you may remain liable for the remaining balance.
7. Liquidity Risk
Property is an illiquid asset. You may not be able to sell your property quickly or at the expected price, particularly during adverse market conditions. Early repayment of the mortgage may be subject to fees as specified in your mortgage agreement.
8. Platform and Operational Risk
While SodaBrothers implements industry-standard security measures and operational controls, no digital platform is entirely free of risk. Service interruptions, data breaches, or operational failures may occur. We maintain appropriate insurance and business continuity measures, but cannot guarantee uninterrupted service.
9. Not Financial Advice
Information provided on the SodaBrothers platform, including quotes and indicative offers, does not constitute financial, legal, or tax advice. We are a mortgage lender, not a financial adviser. We strongly recommend that you consult independent professional advisers before making any investment or borrowing decisions.
10. Contact
If you have questions about the risks associated with our mortgage products, please contact us at info@sodabrothers.eu.