Purchasing property in Spain as a non-resident can present unique financing challenges, particularly for buyers living outside Europe. Understanding the available mortgage options, loan-to-value requirements and associated costs is essential when planning a property purchase.
At Your Spanish Mortgage, we specialise in helping international buyers navigate the Spanish mortgage market and secure financing tailored to their individual circumstances.
In this case study, we look at a recent mortgage transaction achieved for a US resident purchasing a Spanish property for €1,085,000. The client secured a mortgage of €651,000, representing a 60% loan-to-value (LTV), with a 20-year repayment term.
The mortgage was structured as a fixed-rate loan, providing the client with the potential for long-term payment stability and greater financial certainty.
Mortgage Structure and Terms
The lender offered a competitive mortgage package, with interest rates linked to the client’s relationship with the bank and the financial products held.
The initial fixed interest rate was 2.55% for the first year, subject to meeting the bank’s product requirements, including home insurance, an alarm system and qualifying monthly income.
From the second year onwards, the mortgage rate would depend on the products maintained:
- 3.10%: Standard interest rate without discounts.
- 2.55%: Reduced rate by maintaining the qualifying products.
- 2.40%: Potential rate with the maximum available discount.
The bank also offered a particularly attractive fee structure, with no opening or study fee.
A Tailored Approach to Non-Resident Mortgages
This case demonstrates how international buyers can access competitive Spanish mortgage financing, even when residing outside the country.
For non-residents, Spanish banks typically assess mortgage applications based on nationality, country of residence, income, financial profile and the property being purchased.
It is important to note that mortgage rates and lending conditions can change. Since this transaction was completed, the lender has increased its rates by approximately 0.20 percentage points. The terms outlined here therefore represent a recent example rather than a current guaranteed offer.
Whether you are a US resident, UK buyer or international investor, Your Spanish Mortgage can help you understand the financing options available for your Spanish property purchase.
From second homes and holiday properties to high-value investments, our team works with Spanish lenders to identify mortgage solutions suited to your circumstances.
Arrange your mortgage assessment with YourSpanishMortgage
If you are considering buying a luxury villa, apartment or second home in Spain, understanding your financing options early can help you approach the purchase with confidence.
YourSpanishMortgage can help you explore Spanish mortgage options based on your residency, nationality, income, deposit and property budget.
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