January 31, 2017 Eloi Ruart

Calculate your Euro mortagage with a online mortage calculator

How to get a mortgage in Spain

If you require a mortgage against the property in Spain, you should contact your estate agent or local bank as soon as possible. A mortgage can be applied for in Spain or abroad. If you have not arranged a mortgage, we may be able to help you, through an offshore or Spanish bank. If you are making your own arrangements you will need to advise your estate agent of the date by which you expect to have the funds available in order to complete the purchase. A non-resident purchaser in Spain may apply and obtain a mortgage of up to approximately 70% of the bank’s valuation of the property. A resident or national purchaser may obtain up to 100% of the valuation (when purchasing repossessed stock from a bank). Under such circumstances the property purchased in Spain would act as guarantee for the mortgage. Both variable and fixed rate mortgages are currently available.

Interest rates on mortgages in Spain are nearly always based on the Euribor. Spanish banks are currently offering rates of between 1% – 1.5% + Euribor. During 2012, the Euribor has come down from 1.837% in January to 0.542% in December (2012), currently the lowest rate ever (see below for latest rates).  Other factors to discuss and negotiate with a bank are those of interest only during a stipulated number of years or a combination of interest and capital repayments, and of course the total period of the loan.

euribor-1-year-trend

euribor-over-a-decade-2015-2016

(Images reproduced from SPANISH PROPERTY INSIGHT.)

Euribor Update:

During 2013 the Euribor average was 0.57% –  Historically, the lowest average level in the Euro zone.

During 2014 the Euribor average was 0.473% –  Beating the previous year’s low.

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