Mortgage rates in Spain for non-residents [August 2023]
If you are comparing mortgages for a property purchase in Spain, knowing what the latest deals on the market are is a great way to help you negotiate the best price.
We have calculated the effective interest rate for each mortgage to make it easier to compare fixed, variable, and mixed deals, while also accounting for a lower initial interest rate that is usually in place for the first year or two. This is not quite the same as the APRC, which would also include taxes and fees associated with the mortgage.
Cheaper fixed rate mortgages
In August, CaixaBank introduced more competitive fixed-term deals, going as low as 3.06% if you agree to get your home insurance and home security through them. The best variable rate mortgages became a bit more expensive versus July, mainly because the Euribor went up. The best deal on mixed mortgage deals was also higher than in July.
CaixaBank and Sabadell had the best deals for non-residents in August
When we compare the banks that have been making offers to our clients this summer, we see that CaixaBank has provided the best deals, followed by Sabadell and Cajasur. There is a big variance between the highest and lowest offer from the same bank, which shows that it’s often worth it to negotiate with them.
| Bank | Lowest offer | Median offer | Highest offer |
|---|---|---|---|
| CaixaBank | 3.06% | 5.00% | 5.24% |
| Sabadell | 4.00% | 4.99% | 5.66% |
| Cajasur | 4.38% | 5.61% | 6.13% |
| Unicaja | 4.60% | 4.62% | 4.96% |
| UCI | 5.42% | 5.49% | 5.57% |
| Santander | 5.82% | 5.82% | 5.82% |
The data in the table includes offers from June, July, and August
While UCI and Santander have made more expensive offers, these banks are great if you are looking for a tax efficient renovation mortgage (UCI), buying from countries outside of the Eurozone and UK (UCI) or if you are buying a property worth under €100,000 (Santander).
Faster mortgage offers in August
Another positive development was that the typical time it took banks to issue a non-binding offer fell to four days in August, from 11 days in July. Cajasur and Sabadell were among the fastest banks, with some applicants receiving their first non-binding offer within three days.
Homevest case studies from August 2023
A US citizen living in the UK bought a property in Madrid worth €1,730,000. They received a mortgage of €1,384,000 from CaixaBank with a variable rate of 0.3% + Euribor 12m, with a 20 year term. It took seven days for the bank to issue the non-binding offer.
A Swiss citizen living in France bought a property in Marbella worth €850,000. They received a mortgage of €595,000 from Unicaja with a mixed rate over 20 years. For the first three years, they have a fixed interest rate of 2.5%. Thereafter they pay 0.69% + Euribor 12m. It took 19 days for the bank to issue the non-binding offer.
A Spanish citizen living in the UK bought a property in Gijon worth €430,000. They received a mortgage of €258,000 from Sabadell with a fixed rate of 4.4%, paid over 15 years. It took 15 days for the bank to issue the non-binding offer.
Interested in a mortgage in Spain?
September is a great time to apply. The banks are all back from August vacations, and are ready to provide you with mortgage offers. Applying with Homevest is free of charge.
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