diff --git a/liana-gui/src/app/state/mod.rs b/liana-gui/src/app/state/mod.rs
index 19a1d59d..e76c274b 100644
--- a/liana-gui/src/app/state/mod.rs
+++ b/liana-gui/src/app/state/mod.rs
@@ -29,7 +29,7 @@ use super::{
 
 pub const HISTORY_EVENT_PAGE_SIZE: u64 = 20;
 
-use crate::daemon::model::LabelsLoader;
+use crate::daemon::model::{coin_is_owned, LabelsLoader};
 use crate::daemon::{
     model::{remaining_sequence, Coin, HistoryTransaction, Payment},
     Daemon,
@@ -94,7 +94,7 @@ fn coins_summary(
     for coin in coins {
         if coin.spend_info.is_none() {
             // Include unconfirmed coins from self in confirmed balance.
-            if coin.block_height.is_some() || coin.is_from_self {
+            if coin_is_owned(coin) {
                 balance += coin.amount;
                 // Only consider confirmed coins for remaining seq
                 // (they would not be considered as expiring so we can also skip that part)
diff --git a/liana-gui/src/app/state/spend/step.rs b/liana-gui/src/app/state/spend/step.rs
index e1079c4d..504966e4 100644
--- a/liana-gui/src/app/state/spend/step.rs
+++ b/liana-gui/src/app/state/spend/step.rs
@@ -21,7 +21,7 @@ use liana_ui::{component::form, widget::Element};
 use crate::{
     app::{cache::Cache, error::Error, message::Message, state::psbt, view, wallet::Wallet},
     daemon::{
-        model::{remaining_sequence, Coin, CreateSpendResult, SpendTx},
+        model::{coin_is_owned, remaining_sequence, Coin, CreateSpendResult, SpendTx},
         Daemon,
     },
 };
@@ -283,8 +283,11 @@ impl DefineSpend {
             }
             outpoints
         } else if self.send_max_to_recipient.is_some() {
-            // If user has not selected coins, send the max available from all coins.
-            self.coins.iter().map(|(c, _)| c.outpoint).collect()
+            // If user has not selected coins, send the max available from all owned coins.
+            self.coins
+                .iter()
+                .filter_map(|(c, _)| coin_is_owned(c).then_some(c.outpoint))
+                .collect()
         } else {
             Vec::new() // pass empty list for auto-selection
         };
@@ -354,13 +357,15 @@ impl DefineSpend {
                     );
                 }
             }
-            // For coin selection error (insufficient funds), do not make any changes to
-            // selected coins on screen and just show user how much is left to select.
-            // User can then either:
-            // - modify recipient amounts and/or feerate and let coin selection run again, or
-            // - select coins manually.
             Ok(CreateSpendResult::InsufficientFunds { missing }) => {
                 self.amount_left_to_select = Some(Amount::from_sat(missing));
+                if !self.is_user_coin_selection {
+                    // The missing amount is based on all candidates for coin selection
+                    // being used, which are all owned coins.
+                    for (coin, selected) in &mut self.coins {
+                        *selected = coin_is_owned(coin);
+                    }
+                }
                 if let Some((i, recipient)) = recipient_with_max {
                     let amount = Amount::from_sat(if destinations.is_empty() {
                         // If there are no other recipients, then the missing value will
diff --git a/liana-gui/src/daemon/model.rs b/liana-gui/src/daemon/model.rs
index c4657ba9..9bbb0b94 100644
--- a/liana-gui/src/daemon/model.rs
+++ b/liana-gui/src/daemon/model.rs
@@ -29,6 +29,13 @@ pub fn remaining_sequence(coin: &Coin, blockheight: u32, timelock: u16) -> u32 {
     }
 }
 
+/// Whether the coin is owned by this wallet.
+/// This comprises all confirmed coins together with those
+/// unconfirmed coins from self.
+pub fn coin_is_owned(coin: &Coin) -> bool {
+    coin.block_height.is_some() || coin.is_from_self
+}
+
 #[derive(Debug, Clone)]
 pub struct SpendTx {
     pub network: Network,