Mortgages in Spain are available to Spanish nationals, foreign residents, and even foreign non-residents. The conditions vary depending on your status, income, and profile — and knowing the difference can save you both money and stress.

Loan-to-Value (LTV)

• Spanish nationals: typically up to 80%, but certain groups (first-time buyers, under 35s, families with children) may qualify for 90–100% financing.

• Foreign residents: usually up to 80%, though some banks will extend to 90% with strong income and financial stability.

• Foreign non-residents: normally 60–70%, though specialist banks and brokers may arrange more in certain cases.

Loan Terms

• Spanish nationals & foreign residents: standard 20–25 years, with some banks extending to 30–35 years for younger buyers.

• Foreign non-residents: normally capped at 20–25 years.

• In all cases, the maximum borrower age at the end of the mortgage is 70–75 years.

Interest Rates & Incentives

• Current mortgage rates in Spain (2024–2025): 3%–4% on average.

• Spanish nationals and foreign residents: often secure rates as low as 2.5%–3% fixed, depending on profile.

• Foreign non-residents: usually 3.5%–5%.

• Most loans are variable-rate, linked to the Euribor plus a margin (often 1.0%–1.5%). Fixed-rate loans are available but usually higher.

• Many banks offer interest rate discounts if you take other products with them, such as:

  • Home insurance, life insurance, or alarm/security insurance

  • Current account with direct debit of salary/pension

  • Credit card usage

  • Investment or pension products

• These discounts can reduce your rate by up to 1%, but the real cost of bundled products should always be checked carefully.

Documentation Required

All applicants must prove financial stability. Typical documents include:

• Passport and NIE.

• Tax returns.

• Recent payslips (3–6 months).

• Bank statements.

• Details of existing loans or debts.

• For self-employed: audited accounts or company financials.

Real Examples

Example 1 – Foreign non-resident buyer

Sarah, from the UK, buys a resale villa near Alicante for €200,000.

• The bank finances 65% (€130,000).

• She contributes €70,000 plus 12–15% purchase costs (€24,000–30,000).

• Term: 20 years, variable at Euribor + 1.2%.

• Monthly repayment: about €600–650.

Example 2 – Spanish national under 35

David, a 30-year-old Spanish national, buys his first home in Alicante for €150,000.

• He qualifies for 90% financing (€135,000).

• Term: 30 years fixed at 2.8%, with discounts for taking bank insurance and direct debit of his salary.

• Monthly repayment: around €555.

This shows how much conditions can differ depending on whether you are a foreign non-resident, a foreign resident, or a Spanish national.

Why Work With Us

At Holiday Homes Catral, we collaborate with banks and independent brokers to secure the best possible deals. We handle the process from start to finish: preparing documentation, negotiating with banks, ensuring secure fund transfers, and providing complete transparency. Our support continues until the day you collect your keys.

⚖️ Disclaimer: This information applies to the Alicante province / Valencian Community. Mortgage terms vary depending on the bank, nationality, residency status, and personal financial profile. Personalised advice is always recommended.