- spain@spectrum-mortgages.com
- +34 936 658 596
As interest rates are rising in Spain, we have compiled a list of solutions to ensure our clients will still obtain a competitive yet safe solution for their Spanish mortgage.
FIXED VS VARIABLE RATES
Opting for a fixed rate is the best option if you do not want to be affected by the fluctuations of the markets and you do not have the financial capacity to assume increasingly expensive payments. A variable interest rate, on the other hand, is only a realistic option if you can return the money in a short period of time (so that there is no time for the Euribor to rise too much) and you have sufficient purchasing power to assure monthly instalments that could be increasing.
With the rise of interest rates and the exponentially growing gap between variable and fixed rates, the mixed type has resurrected. This is a mortgage that remains at fixed levels during the first years of the loan, becoming variable in the last few years. This option allows you to avoid any rise in the Euribor (at least for a few years) without having to pay the differentials that banks now require for fixed rate mortgages.
At Spectrum International Mortgages we currently have access to these competitive rates, depending on whether your income is earned in € or in another currency:
NON-EURO income (if your income is received in another currency than euros):
| Inital period - FIXED | Remaining period - VARIABLE |
|---|---|
| 3.85% fixed, for 5 years | Euribor + 1.49% |
| 4.05% fixed, for 10 years | Euribor + 1.39% |
| FIXED rate | |
|---|---|
| 15 years | 3.25% |
| 20 years | 3.18% |
| 30 years | 3.05% |
CASE STUDY
To show this in a typical situation, below is an example of how a mortgage of 250,000€ could look when going through Spectrum International Mortgages:
Property Price: 357,000€
Mortgage amount: 250,000€ (Loan to Value: 70%)
5 years Initial Fixed rate 3.85%, then Euribor + 1.49% for the remaining duration of the mortgage
Total duration 25 years
Monthly installments: 1,298€/month