Spanish Mortgage interest rate rise

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.

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%
* The total duration of the mortgage cannot exceed 30 years.

EURO income (if your income is received in euros):
FIXED rate
15 years 3.25%
20 years 3.18%
30 years 3.05%

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


With our years of experience we will ensure that your mortgage application is handled as quickly as possible, assuring that your rate is “locked in” from the start.

We will also review all aspects of your application with you, making sure that all the additional costs, if any, are understood and approved. Some banks might, for example, insist on life and house insurance, payment protection insurance, credit cards, etc…

We will be here to assist and explain, every step of the way!

Talk to one of our advisers now:

Office: +34 93 665 8596