Buying a Spanish property can be exciting, but finding the right mortgage lender is crucial. With so many banks offering different mortgage products, it’s essential to understand your options.
Spain has a competitive mortgage market, with Spanish banks offering residents and non-resident buyers loans. However, mortgage terms, interest rates, and fees vary across lenders. Some banks provide better rates, while others offer more flexible repayment plans.
In this guide, we’ll explore the best mortgage lenders in Spain, what to look for when choosing a bank, and which lenders offer the best deals in 2025.
Factors to consider when choosing a Spanish bank for mortgages
Getting a mortgage in Spain involves more than just comparing interest rates. Different banks offer various mortgage terms, fees, and eligibility criteria. Understanding these factors will help you make a better decision.
Interest rates and mortgage terms
There are two main types of interest rates:
- Fixed-rate mortgages – The interest rate stays the same throughout the loan term, making monthly payments predictable.
- Variable-rate mortgages – The interest rate changes based on market rates, meaning payments can go up or down.
- Mixed mortgages – A combination of fixed and variable rates, where the loan starts with a fixed rate and later switches to a variable rate.
The mortgage term can range from 15 to 30 years. A longer loan term reduces the monthly payment but increases the total interest paid.
Mortgage costs and fees
Apart from the purchase price, buyers need to consider additional costs such as:
- Stamp duty and taxes
- Notary fees
- Origination fees (charged by some banks for processing the loan)
Some banks may also charge early repayment penalties. Always compare the total cost of a mortgage, not just the interest rate.
Eligibility criteria and required documents
To apply for a mortgage, banks require:
- Proof of income, such as salary slips or tax returns
- Bank statements for the past six months
- Employment contract (for employed individuals)
- Additional documents for non-resident buyers, such as a Spanish NIE (foreigner’s tax number)
Remote banking and customer service
Some banks offer Remote Banking, allowing buyers to apply for and manage their mortgages online. This is useful for expat-friendly mortgage lenders that cater to international buyers.
Now that you know what to look for, let’s explore the top banks for home loans in Spain and what makes them stand out in 2025.
Top Spanish banks offering mortgages in 2025
Finding the right lender can make the mortgage application process smoother. Based on their mortgage deals, customer service, and interest rates, here are some of the best mortgage lenders in Spain.
Banco Sabadell
Banco Sabadell is a well-known bank that offers mortgages to residents and foreigners. It offers fixed-rate, variable-rate, and mixed mortgages.
Pros
- Offers mortgages to non-resident buyers
- Provides online mortgage tracking through Remote Banking
- Clear and transparent mortgage terms
Cons
- Higher fees compared to some competitors
- Requires a larger deposit for non-resident mortgages
Santander
Santander is one of the biggest Spanish banks, offering competitive mortgage rates. It provides mortgages for various types of property, including investment property.
Pros
- Flexible loan options for residents and non-residents
- Reliable customer service with dedicated mortgage advisors
- Transparent interest rates
Cons
- The approval process can take longer
- Some mortgage deals require opening a Santander account
CaixaBank
CaixaBank is an excellent option for those buying a home in Spain. It offers Spanish mortgage options that provide buyers with peace of mind.
Pros
- Specialised mortgage solutions for expats and foreigners
- Competitive Spanish mortgage rates
- Flexible repayment options
Cons
- Higher early repayment fees
- Customer service response times can be slow
Bankinter
Bankinter is popular for its digital mortgage services. It offers both fixed- and variable-rate mortgages, making it a flexible option.
Pros
- Offers a digital application through Remote Banking
- Allows early repayment with low penalties
- Provides a Spanish mortgage calculator to estimate costs
Cons
- Stricter eligibility requirements
- Higher minimum income requirement for foreign buyers
Cajasur
Cajasur is ideal for those buying in the Costa del Sol and other parts of Andalusia. It specialises in Spanish mortgage solutions for foreign buyers.
Pros
- Good mortgage deals for property purchases in Andalusia
- Flexible mortgage terms
- Local expertise for buying property in Spain
Cons
- Limited availability outside of certain regions
- Requires a higher deposit for non-resident mortgages
Now that you know the top banks for home loans, let’s answer some common questions about mortgages in Spain.
Working with a mortgage broker
Navigating the Spanish mortgage market can be complex, especially for international buyers. If you’re looking for a reliable mortgage broker, working with a professional can help you compare lenders, understand interest rates, and complete the application smoothly. Mortgage brokers also assist with paperwork, ensuring you meet all legal requirements.
Frequently Asked Questions
Can I apply for a mortgage in Spain without living there?
Yes, many Spanish lenders offer non-resident mortgages. However, the process requires extra documents, such as bank statements and proof of income. Some banks also require a larger deposit. A Spanish mortgage broker can help find the best mortgage deal for non-residents.
How much deposit do I need for a mortgage in Spain?
Banks finance up to 80% of the purchase price for Spanish residents. This is usually 60-70% for non-resident buyers, meaning a higher upfront deposit is needed. A Spanish mortgage calculator can help estimate the total cost and deposit amount.
