Santander vs Banca March: which one to pick for your Spanish mortgage?

Looking to buy a high-value property in Spain with a mortgage? There are options available to optimize your investment.

In this guide, we compare two major private banking providers in Spain: Santander and Banca March.  Both offer mortgage products designed for foreigners seeking to maximize their property investments. 

Read on to find out who comes out on top, as we look at requirements and rates, and pros and cons. 

Santander vs. Banca March mortgage for foreigners: an overview 

Santander, the largest bank in Spain, offers private banking services to foreigners interested in financing a new property. They offer 100% financing with investments as collateral for the residual 30%. 

Banca March is another option for clients purchasing properties over 500,000 EUR in Spain. Unlike Santander, Banca March authorizes mortgages only in specific locations, such as The Balearic Islands or Marbella. 

They allow customers to borrow up to 60% of the property price, with a term extended to 20 years. 

Buying a property from abroad can be challenging without the right support. 

Homevest is a digital solution that helps you obtain the best mortgage deals in Spain. 

You can connect with major Spanish lenders to request and compare multiple offers with just one application.

Requirements

A customer with a stable income and significant assets is a great candidate for private banking. Adding a high-value property and a large deposit further strengthens their candidacy.

In addition to EUR, both Santander and Banca March accept applicants who earn their income in GBP or USD. Santander is among the few Spanish banks offering financing to non-residents whose income is AUD.

Banca March requires applicants to have a debt-to-income ratio below 25% when their income is in a foreign currency.

To apply for a mortgage with Santander, you must be a private banking client.

Documents

You will need identification documents, proof of income, savings and investment statements, and property details for both Santander and Banca March mortgages.

The required documents may vary slightly between the two banks.

Santander requires a bank balance statement for the account where you have liquidity to qualify for their private banking services. 

Similarly, Banca March asks for a summary of assets indicating market value, mortgage details, and rental income if applicable.

An NIE number is mandatory when buying a property in Spain, so you need to prepare for it regardless of the bank.

Mortgage rates for non-residents

The rates from Santander for a standard mortgage are approximately 1% base rate + Euribor.

The mortgage rate a customer can access can vary depending on the type of property, its value, and the deposit amount.

At Banca March, customers with a net income of over 4,000 EUR can access an initial rate of 3.40% for the first four years, followed by 1.25% plus the 12-month Euribor.

The early redemption fee is 2% during the first 5 years and 0% after that. 

Santander vs Banca March mortgage for foreigners: pros and cons

Now we come to the important part, where we compare the offerings of Santander and Banca March for financing a property as a non-resident. 

How do they stack up? 

Let’s examine the pros and cons of each.

Santander mortgage for foreigners: pros and cons

Pros 

• well-known and trusted banking institution
• offers the opportunity to access 100% financing for private banking with investments as collateral
• one of the few banks that consider eligible Australian Dollars for a mortgage in Spain
• covers all of Spain

Cons

• you can access this type of mortgage only if you are a private bank client

Banca March mortgage for foreigners: pros and cons

Pros

• special products available for obtaining a mortgage via a corporate entity
• borrow up to 60% of the property's purchase price
• covers the notary fees for the mortgage deed and the costs for the Land Property Register
• early repayments after the 5th year are free of charge, so you can shorten the mortgage and pay it completely off at your convenience
• the currencies allowed apart from EUR are: GBP, CHF, DKK, SEK, NOK, and USD
• you are not required to purchase additional financial products from Banca March for your mortgage, except for home insurance, which is mandatory by law in Spain when mortgaging a property, and a bank account

Cons

• mortgages are authorized only for properties in specific locations like the Balearic Islands, Barcelona, Madrid, Marbella, and the Canary Islands
• 1% agreement fee associated with the mortgage
• Banca March doesn’t offer fixed mortgages

Santander vs Banca March mortgage: which one is best for a foreigner interested in buying property in Spain?

Whether you choose a Santander private banking mortgage or one from Banca March depends on your financial plans and needs.

This comparison should give you a clearer understanding of what each option offers and how it suits your situation.

If you want to explore additional options, consider Homevest, which connects you with multiple Spanish lenders, including Caixa, UCI, and Sabadell.

Keep in mind that banks assess cases individually, and interest rates can vary.

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.