MORTGAGES IN SPAIN

Although fixed-rate mortgages are not automatically affected by Euribor changes, increased competition among banks and the expectation of continued low rates are driving down the interest rates on new fixed mortgages. Currently, offers range between 2% and 2.25% for financially solid applicants.

The ECB’s current monetary policy creates a favourable environment for those looking to buy a home. However, it’s important to note that despite lower interest rates, average house prices have risen by 8% over the past year and this upward trend is expected to continue in 2025. Therefore, it’s essential to carefully assess your borrowing capacity and consider both current and future market conditions.

Some basic guidance –

• Review Existing Mortgages: If you have a variable-rate mortgage, consider reviewing your terms and possibly switching to a fixed rate if it better suits your financial situation.
• Compare Offers: If you’re shopping around for a new mortgage, be sure to compare offers thoroughly—not just interest rates, but also flexibility, fees and other costs.
• Seek Professional Advice: Given the complexity of the mortgage market and changing economic conditions, consulting a suitably experienced adviser will help to ensure informed and financially favourable decision making.

In summary, the ECB’s latest rate cut presents opportunities for both current and future mortgage holders. Still, it’s important to understand the options available to you and proceed with caution to fully benefit from current market conditions.

Should you have any enquiries regarding the content of this article, or any other questions relating to mortgages in Spain, please do not hesitate to reach out to us for further information.