At Spectrum International Mortgages we have been watching the change in rates and have decided to do a yearly update on the Spanish mortgage rate situation to keep track. It goes without saying that the rates we mention in this article are based on the market at the moment of publishing and we cannot guarantee that these rates will be available in the future. Also, please bear in mind that the banks in Spain do not offer interest only mortgages, which means that both the fixed rate mortgages and variable rate mortgages are capital repayment loans.
Looking at variable rates, the situation is currently as follows:
1.5%+EURIBOR for non-residents 1.3% for residents As opposed to last year, we are now seeing that the Spanish banks have started to distinguish between residents and non-residents as well as what type of profile the client has. This means that the non-residents will still be offered a lower LTV than residents but it also means that depending on their profile, the terms and conditions are now looking quite different from what is available for residents.
The above-mentioned rates are so called ‘clean’ rates, meaning that except for the first year, there are no other products from the bank attached. Normally, you would be asked to take, for example, life and house insurance, payment protection insurance, credit cards, investment funds or pension plans to decrease your rate to a respectable level. However, arranging a mortgage through Spectrum International Mortgages, you will be able to avoid this in the vast majority of cases. As mentioned, every case is now treated 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 420,000€?
To apply this in reality, below is an example of how a mortgage of 420,000€ could look when going through Spectrum International Mortgages:
Cash needed to complete the operation:
Disclaimer: The rates presented in this update are based on an average of what we observe the banks offer our clients and are only to serve as an example. We cannot guarantee that these rates will be available. Should you want to get a personalized quote, please get in touch with us.
| Duration in years | Rate in % for non-residents (given right profile) |
| 10 | 2.19 |
| 15 | 2.55 |
| 20 | 2.70 |
| 25 | 2.90 |
| 30 | Not available for non-residents |
| Duration in years | Rate in % for residents (given right profile) |
| 10 | 2.00 |
| 15 | 2.20 |
| 20 | 2.40 |
| 25 | 2.70 |
| 30 | 2.75 |
1.5%+EURIBOR for non-residents 1.3% for residents As opposed to last year, we are now seeing that the Spanish banks have started to distinguish between residents and non-residents as well as what type of profile the client has. This means that the non-residents will still be offered a lower LTV than residents but it also means that depending on their profile, the terms and conditions are now looking quite different from what is available for residents.
The above-mentioned rates are so called ‘clean’ rates, meaning that except for the first year, there are no other products from the bank attached. Normally, you would be asked to take, for example, life and house insurance, payment protection insurance, credit cards, investment funds or pension plans to decrease your rate to a respectable level. However, arranging a mortgage through Spectrum International Mortgages, you will be able to avoid this in the vast majority of cases. As mentioned, every case is now treated 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 420,000€?
To apply this in reality, below is an example of how a mortgage of 420,000€ could look when going through Spectrum International Mortgages:
| Property Price | 600,000euro |
| Mortgage amount | 420,000euro (70%) |
| Durations in years | 20 |
| Fixed rate | 2.70% |
| Monthly instalments | 1,703.51euro |
- 30% down payment: 180,000 euro
- Approximately 11% taxes and cost: 66,000euro
- TOTAL: 246,000 euro
Disclaimer: The rates presented in this update are based on an average of what we observe the banks offer our clients and are only to serve as an example. We cannot guarantee that these rates will be available. Should you want to get a personalized quote, please get in touch with us.