In the space of just a few years, Spain has gone from being one of the most expensive countries to get loans, to one of the cheapest. Mortgage rates were particularly higher so as to discourage potential borrowers. However, an increase in the number of lenders has resulted in a lot of competition which has helped bring rates down.Today, there are mortgage offers at a rate of interest of 2.5% above Euribor(rate at which Eurozone banks lend to each other ), compared to  past years when the rate was as high as 4 percentage points above Euribor.  It’s worth noting that the Euribor for the month of July 2016 stood at -0.056%.The average interest rate among Spanish banks stands at 2.12%.Only Germany has a lower rate (2%). This article attempts to establish the Spanish banks with the lowest interest rates.


1. Banca March

It has been voted the most flexible private Spanish lender for five years running. There are no fixed interest rates but the rates payable will depend on the clients’ fiscal situation. It’s also the most solvent bank in the entire country. Rates are likely to be less than 2% above Euribor, for most nonresident borrowers.

2. Sabadell group

Sabadell group is the fourth largest lending group in Spain and has taken over a number of smaller lenders in the recent past, for instance,CAM, in an attempt to consolidate its position as the best financial partner. Not only do they offer competitive interest rates, but there is also a premier product for high earners and terms are likely to be flexible depending on client profile. In addition, life cover is compulsory, unless a client lives outside the EU.

3. Bankinter

The bank offers nonresident mortgages up to 70% to loan value. When compared to other Spanish banks, Bankinter’s terms are neither leading edge, nor uncompetitive. Interest rates are likely to be less than 2% above Euribor. However, the bank has a reputation for carrying out diligent and detailed analysis of a client’s financial standing. This helps avoid default issues.


4. BBK

The bank has been on a merging spree, taking over smaller lenders like Caja sur and Kuxta, though some brand names, like Caja sur still remain. From the last quarter of 2015, the bank has adopted an aggressive approach to the mortgage market for both residents and non residents. Loan value is between 65% and 70%. Again, terms will depend on fiscal situation of the applicant and the relationship they may have had with the bank in the past. An important point to note is that with BBK, life cover is not compulsory but will just affect the interest rate.

5. Caixa bank

The bank offers up to 60% loan to value for loans less than €1m, and up to 50% for loans exceeding €1m. A competitive rate is offered for the first five years, followed by variable rates above Euribor. The bank also adds life insurance to every product.

Bankia are not offering mortgages as at present and are attempting to reduce risk. They will only offer a mortgage if a client is buying one of their properties.

In overall, market research has revealed that medium sized lenders like Banca March are likely to be cheaper compared to big banks like Santander and BBVA. Big banks are generally more expensive and likely to have more stringent application requirements.

This blog explores Spain’s economy and banking system. It describes popular Spanish banks, their current details and their history, current market climates in Spain, and offers guides to banking in Spain. This blog was written to assist users and customers in navigating the Spanish banking system

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