Mortgage Approvals Costa Blanca: Positive Signs as Spanish Lending Improves in 2025
The outlook for the Spanish Property Market is becoming increasingly positive as the mortgage market showed clear signs of recovery in the first half of 2025. Recent data confirms that lending activity has increased significantly, supported by easing interest rates and renewed buyer confidence. For anyone considering buying property these news mortgage approvals on the Costa Blanca, could make financing a Spanish home more achievable than it has been in recent years.
Mortgage Lending Picks Up Across Spain
According to analysis from Spanish Property Insight, mortgage lending in Spain rose by close to 20% in the first half of 2025 compared with the same period last year. This increase marks a clear turnaround after a slower period caused by higher interest rates and stricter lending conditions.
For buyers focused on the Costa Blanca, this is an encouraging sign. Banks are becoming more active again, approving more loans and competing for well-qualified borrowers, including international buyers purchasing holiday homes and investment properties.
Falling Interest Rates Boost Mortgage Approvals on the Costa Blanca
One of the biggest drivers behind the rise in mortgage approvals is the gradual reduction in interest rates. As inflation stabilises and financial markets adjust, Spanish banks have begun offering more competitive mortgage products.
Lower rates mean:
- Reduced monthly repayments
- Improved affordability for buyers
- Greater flexibility from lenders
These conditions are particularly relevant to areas where property demand remains strong, thanks to lifestyle appeal, year-round sunshine, and international connectivity.
Fixed-Rate Mortgages Remain the Preferred Choice
Another key trend impacting mortgage approvals on the Costa Blanca is the continued popularity of fixed-rate mortgages. Around two-thirds of new mortgages in Spain are now fixed-rate, reflecting buyers’ desire for long-term stability and predictable repayments.
For foreign buyers purchasing on the Costa Blanca, fixed-rate mortgages can provide peace of mind, especially when planning long-term residency, rental yields, or retirement budgets.
Why the Costa Blanca Benefits from These Trends
This regions continues to attract strong demand from both Spanish and international buyers and this strength supports healthy mortgage approvals on the Costa Blanca as banks favour areas with consistent transaction volumes and stable property values.
Popular locations such as Villamartin, Torrevieja, Ciudad Quesada and Cabo Roig, remain attractive for:
- Permanent relocations
- Second homes
- Buy-to-let investments
As a result, lenders are generally comfortable financing purchases in this region, provided buyers meet affordability and documentation requirements.
Q&A: Mortgage Approvals on the Costa Blanca
Are mortgage approvals now easier to obtain on the Costa Blanca?
Yes. Compared with the previous two years, mortgage approvals on the Costa Blanca are becoming easier due to increased bank lending activity and lower interest rates. Buyers with stable income and good credit profiles are seeing improved approval chances.
Can non-residents get a Spanish mortgage on the Costa Blanca?
Yes. Spanish banks regularly offer mortgages to non-residents. Typically, non-residents can borrow up to 60–70% of the property value, while residents may qualify for higher loan-to-value ratios.
Are fixed-rate or variable mortgages better in Costa Blanca?
Most buyers currently prefer fixed-rate mortgages. Fixed rates offer long-term certainty and protection against future rate increases, which is particularly appealing for overseas buyers.
Do falling rates mean property prices will rise?
Lower interest rates often increase buyer demand, which can place upward pressure on prices. However, the Costa Blanca market remains relatively balanced, offering good value compared to other Mediterranean destinations.
Is now a good time to apply for a mortgage in the Costa Blanca?
With improving lending conditions and stabilising rates, many buyers consider 2025/2026 a favourable time to explore, especially before competition increases further.
Final Thoughts
The latest mortgage data confirms that Spain’s lending market is moving in the right direction. Rising approval volumes, easing rates, and strong regional demand all point towards a healthier environment.
For buyers considering a Costa Blanca property, now is an excellent time to speak with experienced local agents and mortgage specialists who understand both the Spanish banking system and the needs of international clients.
For property sales and mortgage advice, please contact Costa Blanca Sales.
