Understanding Mortgages in Spain: A Practical Guide for Homebuyers
- Charlie
- Oct 6, 2023
- 3 min read
Updated: Jul 3
Buying a home is a big decision — and choosing the right mortgage is key to ensuring a stable and financially sound purchase.
In this guide, we explain the most important aspects of mortgages in Spain, including interest types, loan conditions, fees, and current trends, so you can navigate the financing process with clarity and confidence.
How much can you borrow?
Most Spanish banks will not finance more than 80% of the property’s value — either based on the purchase price or official appraisal, whichever is lower. That means you’ll need at least 20% saved for the down payment, plus an additional 10–12% for taxes, notary, and closing costs.
Loan term: How long can you repay?
Mortgages in Spain typically have repayment terms between 30 and 40 years. A longer term means lower monthly payments but higher total interest over time.
Types of mortgage interest: Fixed, Variable, or Mixed
There are three main types of mortgages available in Spain:
1. Fixed-rate mortgage
The interest and your monthly payment stay the same for the entire term. It provides stability — a good choice if you want predictability or expect rates to rise.
2. Variable-rate mortgage
The interest rate is linked to the Euribor — the main reference index used by most Spanish mortgages. Your monthly payments may fluctuate depending on market changes. These loans often start with lower interest rates than fixed ones.
3. Mixed-rate mortgage
You pay a fixed rate for the first few years, then switch to a variable rate tied to the Euribor. It combines some early stability with potential long-term savings.
What’s the difference between TIN and APR (TAE)?
TIN (Tipo de Interés Nominal): The base interest rate you’ll pay on the loan, not including extra fees.
TAE (Tasa Anual Equivalente / APR): The effective annual rate, including commissions and additional costs — the best figure to compare mortgage offers.
Common mortgage fees in Spain
Banks may charge several fees in addition to interest:
Opening fee: Charged at the start of the loan, often a small % of the total loan.
Account maintenance fee: Some banks require a linked account and may charge if you’re not a customer.
Early repayment fee: If you repay your mortgage early, either partially or fully, the bank may charge a small penalty.
Current mortgage landscape (2025)
Interest rates have risen sharply over the past year:
As of May, the average fixed mortgage rate reached 3.71%, more than double compared to the previous year.
The Euribor hovers around 4%, strongly affecting variable-rate mortgages.
It’s increasingly difficult to find fixed-rate loans under 4% APR.
Some examples in the market:
BBVA: Fixed rate from 3.82% APR with bundled products; 4.55% APR without.
OpenBank: Fixed rate from 3.6% APR with specific conditions.
EVO Banco: Variable rate from Euribor + 0.48% with conditions.
KutxaBank: Variable rate from Euribor + 0.49% (with payroll and insurance), or +1.49% without.
Which mortgage is right for you?
It depends on your priorities and financial situation:
Want stability and peace of mind? → Choose a fixed-rate mortgage.
Want lower initial payments and can handle risk? → A variable-rate might suit you.
Looking for a balance? → Consider a mixed-rate structure.
Planning to buy property in Barcelona?
We recommend reading these guides to prepare for your purchase:
If you’re exploring financing or looking for expert advice, Charlie’s Properties is here to help you find the best mortgage option for your needs.
Getting a mortgage is not just a financial decision — it’s a long-term commitment. Understanding how it works is the first step toward making a secure and confident investment in your new home in Spain.
