At Spectrum International Mortgages we do an annual update on the rate development in Spain. We do this every year in February and this year will be no different.

As ever, the rates we mention are based on the market at the moment of publishing and we cannot guarantee that these rates will be available in the future, nor that they will be applicable to every individual case. Additionally, it is worth noticing that the banks in Spain still do not offer interest only mortgages, which means that both the fixed rate mortgages and variable rate mortgages are capital repayment loans.

Duration in yearsrate in % (with correct client profile)
102.00
152.10
202.25
252.35
302.50

Looking at variable rates, we observe around 1.2-1.5%+EURIBOR

As opposed to last year, we are now seeing that the Spanish banks have a bigger focus on financial profile rather than residential status. This means that although non-residents are still offered a lower LTV than residents, the fact that they are non-residents no longer has the same impact on rates, terms and conditions as it did last year around the same time.

The rates above are still so called “clean” rates, meaning that except for the first year, there are no other products from the bank attached. It is still normal practise for the banks to have clients set up e.g. different insurances, credit cards, investment funds or pension plans to decrease the rate. Arranging a mortgage through us, you will be able to avoid this in the vast majority of cases. Every case is handled individually and rates will vary depending on individual circumstances, but as a guideline, this is a realistic scenario for the moment.

How will that unfold for a mortgage of 280,000€?

To apply this in reality, let me provide you with an example of how a mortgage of 280,000€ could look when going through Spectrum International Mortgages:

 

Property price400,00€
Mortgage amount280?000€ (70%)
Duration in years20
Fixed rate2.25%
Monthly instalments1,449.86€

Cash needed to complete the operation 168,000€ (30% down payment ->120,000€ plus approximately 12% taxes and costs -> 48,000€ = TOTAL of 168,000€

Products contracted for the first year: life and house insurance. After the first year both insurances can be cancelled with the bank and set up externally, which is normally advisable.