Mortgage rates in Spain for non-residents [April 2024]

When evaluating mortgage rates in Spain as a non-resident, staying informed about current market rates is crucial for securing the best deal. Interest rates fluctuate with economic conditions, making timing essential.

Negotiating is standard practice in Spain, and this is where Homevest can help you secure the most advantageous deal for your profile.

Let’s explore the mortgage rates in 2024 for non-residents together and learn how to optimize your application process.

What banks offer mortgages in Spain for non-residents?

Fortunately, several Spanish lenders offer financing for non-residents, providing you with multiple options to choose from:

• Sabadell: the most competitive deals since the beginning of 2024 without a threshold for the property
• UCI: a flexible lender that offers a variety of mortgage options, including non-residents looking to purchase new-builds or fixer-uppers
• Santander: financing for properties with values starting below 100,000 EUR, though tends to have higher pricing on mortgage offerings
• Banca March: ideal for clients purchasing high-value properties on the Balearic Islands
• Bankinter: full remote banking, ensuring accessibility even when you’re not in Spain
• Unicaja: suitable for non-residents aiming for property purchases over 200.000 EUR while maintaining a maximum economic effort ratio of 25%
• Cajasur: a great option for buying a home in Costa del Sol and nearby Andalusian coasts, with attractive mortgage deals available
• HolaBank by CaixaBank: attractive fixed-term offers, with rates dropping to as low as 3.06% if choosing home insurance and security services
• BBVA: mortgage options exclusively for non-residents with Euro income

Homevest’s service can help you and your family figure out the best mortgage in Spain for non-residents. It is free to use, and Homevest only earns a commission from the lender at the end of the mortgage application process. 

What is the mortgage interest rate in Spain for non-residents?

The average interest rate in Spain is 4.27% in April, a slight increase from the previous month's 4.25%. This marks a continued decline from 4.91% in January 2024.

As the year began, home buyers returned to the market, with banks responding quickly—sometimes on the same day. The average wait time is now 10 days, which is a bit longer than the month before. Banks are continuing to make more competitive offers.

The best average mortgage rate in our dataset for April was 2.98%, which is a slight decrease from March's rate of 3.25%.

This rate was for a fixed mortgage from Sabadell, on a property in Malaga, with a 70% LTV ratio, offered to a UK citizen. The term of the mortgage offer was 25 years.

Over 290,000 UK citizens form an expat community in Spain. Learn everything you need to know about applying for a mortgage in Spain from the UK, including key requirements and navigating post-Brexit changes.

Variable, fixed, and mixed mortgage rates in Spain experienced a slight decrease in April

When comparing the best interest rates, it's important to consider the variety of mortgage products available in Spain, including variable, mixed, and fixed rates. 

We have calculated the effective interest rate for each mortgage to make it easier to compare fixed, variable, and mixed deals. This also accounts for a lower initial interest rate that is usually in place for the first year or two. 

Consult a comparison of fixed-rate vs. variable rate mortgages in Spain to better understand what you're looking for. Financial safety and predictability or flexibility and the potential for lower payments?

If you're unsure about these options, a mixed mortgage might be the solution, offering the advantages of both fixed and variable rates.

Sabadell continues to give the best mortgage offer for non-residents

Since the beginning of 2024, Sabadell has made the most competitive offers. This trend persisted into April when Sabadell presented the best offer among all banks in Spain at 2.98%. 

The offer was for a fixed-rate mortgage with a 25-year term, including home insurance. 

There was a 0.50% opening commission.

Sabadell offers a variety of options, including fixed and variable rates, allowing borrowers to choose a mortgage solution that aligns with their financial goals. Read on for essential information to consider when choosing a Sabadell mortgage.

How will the Spanish mortgage interest rates look in 2024?

According to the Financial Times, the market remains optimistic that the European Central Bank will cut interest rates in Q2 this year, which would be good news for home buyers. 

An ECB survey shows that consumer expectations for eurozone inflation have declined, which is also good news, as rising inflation expectations could lead the ECB to keep rates higher for longer. 

However, several members of the ECB governing council have indicated that the market has been too optimistic. 

The European Central Bank's (ECB) interest rate decisions directly influence the Euro Interbank Offered Rate (EURIBOR). The ECB's rates set the tone for the cost of credit in the economy. When the ECB lower rates tends to lower the EURIBOR, reflecting the decreased borrowing costs for banks.

Homevest helps you to receive mortgage offers from banks in Spain

Homevest is a comprehensive, user-friendly digital platform that assists non-resident applicants in sourcing the required documents required for bank review. It makes sure all necessary paperwork is easy to find and access in one place, prioritizing the security of your data. 

With Homevest, you can centralize your mortgage application and request offers from top lenders in Spain directly from abroad without incurring any fees.

Frequently asked questions

We’ve prepared a question section to put together the most common information you might need when embarking on this mortgage journey. 

1. What are the mortgage conditions in Spain?

Expect to face slightly different regulations for your non-resident mortgage than a local one. Here are some conditions to keep in mind:

• Permanent employment
• Maximum debt-to-income 40% to ensure you are not overextended financially and afford the mortgage obligations
• At least 30% down payment, depending on your financial profile and lender’s policies
• Maximum 70% LTV

2. What documents do I need for a mortgage in Spain?

The mortgage application process involves more documentation for non-residents. You must prove your income and financial security to mitigate the bank's risks. 

Find a checklist with the documents required for a mortgage in Spain and prepare accordingly. 

3. How much deposit do you need for a mortgage in Spain?

As a non-resident buying property in Spain, you can expect Spanish banks to cover up to 70% of the property's value through loans. This means buyers are typically required to contribute a 30% cash deposit, and 4-11% for taxes and fees, which can fluctuate based on the property's location.

4. Do you need a Spanish bank account to buy property in Spain?

Yes, you need a Spanish bank account to facilitate the property-buying process, especially if you are obtaining a mortgage. While having a bank account at the same bank that lends money is not mandatory, you could access some perks.  

Learn about the requirements of a Spanish bank account, compare costs, and explore accounts for non-residents.

5. How many years is a mortgage in Spain?

You could access a mortgage for up to 30 years, but keep in mind that non-residents must usually be under 75 years old at the end of the mortgage term.

Remember, applications are assessed on an individual basis.

Explore a step-by-step guide to help you secure a mortgage in Spain as a non-resident, including how to avoid three common mistakes during the application process. 

We are ready to provide you with mortgage offers. 

Sources used for this article:

1. ECB to start cutting interest rates in the second quarter of 2024, economists predict

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.