Would you like to know why is the best moment to get a mortgage in Spain to purchase a property as investment or holiday home? And would you like to know what it is the best mortgage for you between Fixed-rate mortgages or Variable-rate mortgages? Then reading this article

Now it is an excellent moment to get a mortgage in Spain, the rates are sooooo good

If we take into consideration the EURIBOR (European interbank offered rate), it has been in negative since February 2016 and this trend has continued for the first months of 2018 as we can see in the graph below, with a -0.191value in February 2018.

In this moment funding is really cheap, so borrowing money now is very interesting.

If you are a foreign buyer, you should know that the average funding that you can get a mortgage in Spain from the Spanish financial entities is the 70% of the purchase value of the property or its appraisal value (the financial entity will use the lowest value), although there are no regulations prohibiting banks to grant mortgages in Spain over that 80%.

This bank policy implies that the buyer needs to have saved (at least) the 20% of the value of the property plus the expenses generated during the purchase. For further information click on /see/visit my post on:

TAX WHEN YOU BUY A HOUSE IN SPAIN

Now you understand why it is a very good moment to get a mortgage in Spain. Then I will tell you the two different mortgages in Spain depending on the rate:

  • Fixed-rate mortgages: the same monthly payment during the whole loan term
  • Variable-rate mortgages: today this option is cheaper, however if the Euribor increases, the monthly payment increases as well.

At the present time the granted fixed-rate mortgages in Spain amount to the 38.51% against the variable-rate mortgages which amount to the 61.49%.

Here some good mortgage that you can find in Spain with fixed and variable rates.

So now, after reading this article, you have new and better information to make the best decision for you and your family about the mortgage in Spain.