If you are planning on buying a home in Spain, it is a good time to get a mortgage.
Maybe you had not considered getting one, but it’s actually a popular move at the moment for buyers wary of tying up all their cash in a purchase.
Some might want to diversify their capital across locations; others might want spare cash for other expenses during their new life in Spain – TV house hunters Mandy and Mick took out a 40% mortgage.
Taking out a modest mortgage also means you might be able to afford a more expensive property, rather than compromise on space or location – a decision you might come to regret.
Are mortgages in Spain cheaper than elsewhere in Europe?
The fact is that Spanish borrowing rates are defying Eurozone trends, as Spanish banks have avoided fully passing on inflationary pressures to customers.
“In 2025, the average rate for mortgages granted in Spain stood at 2.79%, compared to a 3.35% average in the Eurozone,” says Kevin Monger of A Place in the Sun Mortgages.
He points out this is far below Germany’s 3.7%.
“In relative terms, accessing finance in Spain was 17% cheaper than in the rest of the continent.”
Even more striking are average UK mortgage rates, which are around 5.30% to 5.85% at the time of writing.
Why are Spanish mortgage rates lower?
Monger adds that these Spanish rates – for non-residents – are part of banks’ strategy of identifying foreign buyers as a strategic priority.
“Banks understand that these clients present very low default rates, maintain long-term relationships, and often purchase additional products.”
Spanish banks have come a long way since the boom years of the early 2000s. They are now much more highly regulated – and conservative.
How much can non-residents borrow in Spain?
The system applies greater caution to non-residents, says Monger.
“The typical maximum LTV (loan-to-value) sits between 60% and 70% of the appraisal value, compared to 80% for residents.”
Interested in finding out more?
Here are five FAQs about getting a mortgage in Spain, or see our section on mortgages.
Thinking about buying in Spain?
A mortgage could help you stretch your budget further, keep more cash available, or make that dream property possible.
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