At Spectrum International Mortgages we have been watching the change in rates and have decided to do a monthly update on the 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.

Duration in years

Rate in %
10
1.75
15
2.00
20
2.40
25
2.60
30
2.70

Looking at variable rates, the situation is currently as follows: 1.25%+EURIBOR

Interestingly, the banks in Spain do not distinguish between residents and non-residents in terms of the rates, only in terms of LTV.

The exclusive bit of the above mentioned rates is that these 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. Arranging a mortgage through us, you will be able to avoid this in the vast majority of cases. It needs to be said that every case is different and these details and rates can vary slightly depending on individual circumstances, but as a guideline this is a realistic scenario for the moment.

How will that unfold for a mortgage of 250,000€?

To apply this in reality, let me provide you with an example of how a mortgage of 250,000€ could look when going through Spectrum:

 

Property Price
357,143euro

Mortgage amount
250,000euro (70%)

Durations in years
20

Fixed rate
2.40%

Monthly instalments
1,312.61euro

Cash needed to complete the operation

150,000euro (30% down payment ->107,143euro plus approximately 12% taxes and cost -> 42,857euro = TOATL of 150,000euro

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.