🏦 Banco Santander has updated its mortgage lending terms for foreign buyers who do not reside in Spain. The fixed interest rate for non-residents has been reduced to 3.2 percent with a loan-to-value (LTV) ratio of 70 percent. These conditions are available to applicants who hold a residence permit from third countries.

📊 Santander's decision is part of a broader trend in the Spanish mortgage market. In early 2026, several major banks revised their mortgage offers for non-residents in an effort to maintain interest from foreign buyers, who remain a stable segment of the market.

Current mortgage terms for non-residents in Spain generally look as follows:

— maximum LTV is 60–70 percent of the property's appraised value;
— loan term is usually limited to 20–25 years;
— the 3.2 percent rate is available with a fixed interest rate for the entire term;
— better conditions often require the purchase of additional bank products, such as insurance.

📈 The reduction of Santander's rate to 3.2 percent makes mortgages in Spain more accessible for foreigners. For comparison, rates for non-residents in 2025 ranged from 3.1 to 4.2 percent, depending on the fixed-rate period and the borrower's profile.

🏠 This change is particularly relevant for buyers from outside the European Union, including citizens of the United Kingdom, who remain the largest group of foreign buyers in the Spanish market. For them, holding a residence permit is becoming an important factor in securing more favorable lending terms.

💡 It is important to understand that banks apply stricter requirements to non-residents. The down payment for foreign buyers is typically 30–40 percent of the property's value, while for residents this threshold is lower. However, the reduction of the fixed rate to 3.2 percent can significantly lower monthly mortgage payments.

For potential buyers, this means that 2026 could be a favorable time to purchase property in Spain using mortgage financing. It is essential to note that lending conditions depend not only on the interest rate but also on the borrower's individual profile, including income level, country of residence, and the use of additional banking products.

🔎 You can view available properties in Spain for investment or living on our website.