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.
Characteristics
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 .
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.
Characteristics
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
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.
We all know that the cost of buying a house comes to more than the price quoted for the property, as taxes, professional services and other incidentals
also have to be taken into account. Knowing the overall cost upfront leads to good budgeting and not leaving yourself short at the end of the process.