Posted: Wed Feb 2, 2022 10:59am
Hi
I assume by "international bank" you mean the likes of Wise and N26, and also that your income is received in UK sterling?
I use Wise to convert from sterling to euros, and to pay direct debits. With Wise, your euros are held in an account in Belgium, which means you have an EU IBAN. Utility companies in general have no problem with that, but there may be one or two companies whose databases are hardwired to Spanish IBANs, or whose staff simply don't understand that EU IBANs are acceptable.
The overriding advantage of Wise is the exchange rate and charges - you'll struggle to find better from a local bank.
I can't comment directly about mortgage companies, but I can't see why they should insist on a Spanish IBAN.
ATM fees are a bit more of an issue, but with Wise you can have a debit card and use it in shops etc with no charges. Most ATMs will charge you - but it's the Spanish bank which charges you not Wise, although there seem to be some banks that don't charge. However if you withdraw more than £200 in a month then Wise will charge as well- so use your card to pay for purchases!
Hope this helps!
Cheers
Steve