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Spanish Mortgages 2025: Rates, Financing & What International Buyers Should Know

Spanish Mortgages 2025: Rates, Financing & What International Buyers Should Know

Terrasur Homes | Dec 25

As 2025 comes to a close, Spain’s mortgage market continues to offer one of the most favourable environments in Europe for international buyers. While other countries have faced slower lending conditions, Spain has quietly become one of the most attractive places to finance a home abroad.

For buyers on the Costa del Sol, many of whom are purchasing second homes, investment properties, or planning a relocation, this is good news. It means access to credit remains open, interest rates are easing, and with the right guidance, securing a mortgage in Spain has become more straightforward than ever.

Rates That Favour the Buyer

Throughout 2025, the Euribor has continued to soften, allowing banks in Spain to reduce their lending rates faster than many other European markets.

Average new loan rates now hover between 2.6% and 2.8%.
Both fixed and mixed-rate options are widely available, giving buyers flexibility.
Banks remain well-capitalised and increasingly competitive, particularly for strong, international clients.

In many cases, overseas buyers are finding better mortgage terms in Spain than they would receive in their home countries, a trend that’s expected to continue into early 2026.

Financing for Non-Residents

Non-residents typically qualify for 60–70% loan-to-value (LTV) financing, depending on income, assets, and the property type.
However, what many buyers underestimate is the total capital required.

💡 Tip from the experts:

Non-resident buyers should plan for roughly 40–45% of the property’s value in total funds, including the down payment and purchasing costs (taxes, notary, legal fees, etc.).

Being clear about this early avoids surprises and speeds up the buying process.

A Complex Process — Simplified

One of the most common challenges for international buyers is navigating Spain’s mortgage process.
Between banks, lawyers, notaries, appraisers, and agents, all speaking different languages and following different procedures, the journey can quickly feel overwhelming.

This is where partnering with specialised mortgage brokers makes a real difference. They compare offers from six major Spanish banks through one application, coordinate all communication, and guide buyers from pre-approval to signing the deeds.

When working with a mortgage broker, our customers ensure faster transactions, fewer last-minute surprises, and a much smoother buying experience.

Why Financing Locally Makes Sense

Financing your purchase through a Spanish mortgage doesn’t just simplify the process, it can make financial sense in the long term:

Better access to local interest rates and fixed options.
Potential tax advantages compared to foreign loans.
Strong currency alignment for those earning or investing in euros.

With Spain’s stable banking sector and healthy property market, local financing remains a smart strategy for buyers seeking both security and growth.

Looking Ahead to 2026

Spain’s real estate market continues to be driven by international demand, particularly from Europe, the Middle East, and North America.
As rates continue to ease and banks compete for high-quality clients, the conditions for financing a home in Spain remain strong going into the new year.

Whether it’s your first purchase or an investment expansion, understanding the mortgage landscape can help you move confidently, and make the most of the opportunities 2026 will bring.

📩 If you’re considering buying in Spain, we can help you connect with trusted partners and guide you through every step, from selecting the right property to securing the right financing.