Mortgage interest rate in Spain

Saskia Gruijters,  Friday, 10 March 2017


Mortgage interest rate in Spain

The mortgage interest rate in Spain has some differences with the interest rate in your home country. Besides the interest rate, there are some more important components in choosing the right mortgage in Spain.


Until 2016 in Spain, mortgages were usually taken out at a variable interest rate. Spanish banks only offered an interest rate based on the Euribor. Usually this was a 12 month Euribor which was revised every year. This meant that the interest rate could fluctuate depending on the market situation, which indeed has happened: the increasing interest rate has caused quite some problems.

It gives a feeling of security when you know that the monthly costs are fixed, especially when it comes to your own house (your main residence). Spain too has learned its lesson and nowadays fixed interest rates are being offered by almost all banks.

In periods of low interest rates people usually choose for a fixed rate to benefit from low monthly costs during a long period. This is called the fixed-interest mortgage of which the interest rate is fixed during the whole loan period. This may be different in your home country. The loan period depends on your age. For more information, .

It may still be interesting to have a variable interest rate when the mortgage is taken out for a short period. For early repayment only minimum administration fees will be charged.

If you have taken out a mortgage with a variable interest rate it can be interesting to fix the rate. You can negotiate with the bank to renew the mortgage. If your current bank does not wish to cooperate or when communications do not go smoothly, please consider contacting a mortgage intermediary who can sort this out for you. They know exactly how to go about and are informed of all the regulations and procedures. For more information click .

Saskia Gruijters
Saskia Gruijters

Overlooking the white town of Colmenar in the Spanish province of Málaga in Andalusia
Spanish property for sale. Appartements, villas and housesfor sale in Spain Costa del Sol, Costa Brava and Costa Blanca. For sale by owner and by agent. 
Highly recommended

Yellow lifeguard house on the beach of Benidorm Foreigners with a holiday home in Spain have been hit hard by a sharp fall in house prices. Estate agents expect that the Spanish property market will go down even further. An opportunity for buyers? 
More articles