Changes to non resident rates and facilities announced in January by a number of Spanish Banks
In January, a number of Spanish Banks have updated their Spanish Mortgage products 2026.
The changes are mainly to the rate structures. However there have also been some additions to other parts of the Spanish Mortgage offering. Including introduction of new mixed rate options.
Product updates, in terms of rate, are a mixed bag. A couple of lenders they have reduced their minimum interest rates. For others it has been small increases.
As we move further into 2026, other lenders may also change their product portfolio for non resident mortgages in Spain.
The Euribor has risen slightly each month, for the last 4 months. Uncertainty due to worldwide pressures continue. Also the cost of funds for Spanish Banks has increased. Therefore the challenge for lenders in Spain, is to remain profitable. Versus ensuring they capture market share.
What are the current changes in January 2026 for Non resident Mortgages in Spain.
1 Mixed rate changes
- Loans above 65%, 4.09% fixed for 3 year followed by 1.89% above Euribor thereafter.
- Mortgage below 65%, 3.99% fixed for 3 years. Followed by 1.79% above above Euribor
- Variable Rate review 6 monthly
- 1% arrangement fee
- Maximum loan to value 75%
- Buildings insurance required for minimum rates.
2 interest rate reductions
- Fixed rates from 2.55% for full term.
- Maximum loan to value 70%
- 0% arrangement fee
- Linked products required to achieve minimum rate
3 removal of fixed rate for large loans. Also small price increases
- Fixed rates for loans below 300k 3% with linked products. 3.75% without linked products
- Spanish Mortgages from 300k to 500k 2.8% fixed for the term. Or 3.55% without linked products
- Loans above 500k, now variable rate only, from Euribor plus 0.75% with linked products. Or 1.4% above Euribor without linked products
- Maximum loan to value 70%
- 0% arrangement fee
With all the lenders restrictions may apply. These may include restrictions on minimum earning levels. Or purchase price. Also the currency in which incomes are earned.
Is a borrower in Spain obliged to take linked products from the Spanish lender
By law, all Spanish Banks are required to offer two options. A rate with linked product and a rate without. Most have a menu of linked products. Each product provides a discount to their standard rate. A borrower can elect which linked product to contract, and gain the relevant discount.
Where linked products apply then each year the borrower has the option to retain the linked product. Therefore keep the discount. Or remove the product and lose the discount.
What type of linked products provide rate discounts for a Spanish Mortgage
The types of products that must be contracted, vary from Bank to Bank. A borrower in Spain can expect some or all of the products listed below. Each product contracted provides its own discount level. However must be contracted with the lender.
- Buildings insurance and or contents insurance
- Life cover or health cover
- Required level of transactions for a debit or credit card
- Minimum transfers into bank account each month
- Alarm contract
- Savings plan
- Pension plan
Gaining advice from a regulated and experienced Spanish Mortgage Broker can help to ascertain what works best for each applicant. Weighing up cost and requirement for a linked product versus reduction in rate.
For free guidance on how Spanish mortgages work contact us today.