New Spanish mortgage product available for non residents
One of the lenders has announced in October 2025, a new mortgage product in Spain. Aimed at non residents. This product will provide up to 75% loan to value.
Whilst many years ago. Before the Banking crisis of 2008. A few lenders offered 80% loan to value for non resident Mortgages in Spain. This is the first time we have seen over 70% since then.
The lender is not at the leading edge of rates. The move is therefore a signal that they wish to capture a bigger share of the Mortgage in Spain market. Whilst not undermining their margins. It also shows they have decided the economic strength and housing market in Spain is deemed stable.
It will be interesting to see if any other Spanish Mortgage lenders follow suit.
The new Spanish mortgage product terms and conditions
Interest rates are 3.99% for the first 5 years. This is then followed by 1.79% over the 12 month Euribor for the remainder of the term. In general it is possible to gain a Spanish Mortgage at between 3.25% to 3.5% fixed for 20 years. Therefore the pricing is not the best that can be found.
The lender requires that the applicant for the Mortgage in Spain takes out house insurance. This is contracted at signing of mortgage deed. The borrower is required to take out and pay for a 5 year plan. The premium is taken for the full 5 years. After this point you are free to contract house insurance, with another provider.
The Spanish lender does not require you hold a Bank account with them. This is unusual when taking a Spanish loan. All other Spanish Banks require you have an account with them.
The 75% Spanish Mortgage is only available to European citizens. Although UK applicants for a non resident mortgage in Spain do qualify. Other nationalities can only obtain maximum 70%.
There are minimum loan size restriction. Which can vary by region. Also population size of the area, can affect access. In addition the currency an applicant earns their income can affect the access to it.
Underwriting criteria for a non resident Spanish Mortgage
Whilst most Spanish Banks only look at the fiscal situation of the actual applicant. The lender offering the 75% has a different way of assessing risk for a non resident mortgage in Spain. They look at the total household debt situation. Immaterial of whether other members of the household will be on the application. Or the purchase. Therefore the outgoings of other family members can affect overall debt to income ratios.
What should a non resident Spanish Mortgage applicant consider
Because of some of the restrictions, also the pricing, applicants for a non resident Spanish Mortgage need to consider all options. So for instance is the extra 5% of capital more crucial than a lower rate. Much will depend on each individual applicants requirements.
We are an independent Spanish mortgage broker. This means we can access a wide range of lenders. Explain the solutions that are open to you. Help you decide what is important for you. Manage the complete application process. Therefore guide you through the total process of gaining and completing on a Mortgage in Spain. At the same time obtaining the best terms and conditions for your circumstances.