Looking to make sunny Spain your home? Maybe you have an expanding company and want to take advantage of the business benefits this stunning country has to offer? Whatever the reason, you’ll need a Spanish mortgage to get started.
If you’re eager to take the plunge and buy property in Spain this year and want to be well informed before making a decision, take the time to read through our thorough guide to Spanish mortgage rates in 2025.
The current Spanish mortgage market
The Spanish mortgage market in 2025 offers very competitive rates for both residents and foreign investors. But what factors can influence mortgage rates?
The following can determine the mortgage rates and conditions that Spanish banks might offer you:
- Your existing relationship with the bank (if you have one) – An established positive relationship with a particular lender may result in favourable rates.
- Loan-to-value ratio (LTV) – The percentage of a property’s value that a Spanish bank is willing to lend you when you take out a mortgage. A lower LTV could mean lower interest rates.
- Debt-to-income ratios (DTI) – This metric compares your total monthly debt repayments to your monthly gross income to determine whether you can afford to pay an additional debt.
- Employment stability, your salary and income sources – A stable job or source of income signals to banks that you can be trusted to make your monthly repayments.
- Credit history – Spanish lenders may be reluctant to approve mortgage loan applications if you have bad credit, particularly in the last 7 years.
- Your age – You can apply for a Spanish mortgage from 18 years of age and are expected to have paid the full loan back before you’re 75, which can impact how long your loan term is.
You could potentially earn rate reductions from a specific bank if you switch your bank account to them, insure your life, take out home insurance and fit an alarm system on the property. Spanish mortgage brokers such as ourselves can also use our established relationships with the banks to get you exclusive discounts and loan conditions.
What interest rates do Spanish banks offer?
Banks in Spain can offer buyers fixed or variable rate mortgages, but which is best for you?
Fixed rate mortgages
Fixed rate mortgages are a type of home loan where the interest rate stays the same throughout the mortgage term.
- Spain’s residents and citizens enjoy mortgage rates from 2.5% to 3.9%.
- Non-residents tend to receive a slightly higher mortgage interest rate than residents, ranging from 2.9% to 4.9%.
(Some Spanish lenders may offer lower fixed rates, although you’ll likely need to meet specific criteria.)
The benefits of a fixed interest rate mortgage include stable monthly payments that make it easier to budget and protection from rate increases. However, fixed mortgage rates are usually higher than variable rates, and you could miss out on lower interest rates if the market average falls.
Variable rate mortgage loans
Variable mortgages are another type of home loan where the interest rate may change over time, usually once a year. In Spain, the rate is normally based on the bank’s margin plus the Euribor rate. This is the interest determined by the European Central Bank, which currently sits at 2.096%.
The terms in Spain for a variable rate mortgage loan could include an initial fixed rate period before switching to a variable rate, but this depends on the lender.
The main advantage of a variable rate mortgage loan is that you’ll likely experience a lower initial rate than you would with a fixed one. This means you could benefit from lower payments if the Euribor drops, offering more flexibility when it comes to refinancing or paying off your loan early.
On the other hand, this option tends to be high risk during unpredictable economic climates – if the Euribor rises, your monthly payments will go up. Due to this uncertainty, it can be difficult to budget long-term.
How to calculate the cost of your mortgage in Spain
Our Spanish mortgage calculator provides a simple and quick way to calculate the total cost of your monthly mortgage payments.
All you have to do is enter the loan amount you need to borrow, the term over which you intend to pay it off, and the interest rate. This will then tell you how much your mortgage loan monthly payments will be – it’s as easy as that!
Or you can contact our helpful financial team today for deeper insight.
Get in touch with the Spanish mortgage professionals
At Fluent Finance Abroad, we’ve been securing exclusive mortgage rates for our clients for over 15 years. Thanks to our reputation within the industry, Spanish lenders offer us the best rates and tailor-made terms that we provide directly to you.
Interested? You can speak directly to one of our seasoned mortgage advisors to find out more about gaining the best Spanish mortgage rates for you! Just give us a call or send your enquiry online and we’ll be in touch as soon as possible. email us at info@fluentfinanceabroad.com, and we’ll get back to you to answer your queries ASAP.
