Lowest non resident Spanish mortgage rates (Summer 2011)

Capital and repayment mortgage rates

  1. 50% of purchase price or lower = 2.90%
  2. 55% of purchase price or lower = 2.90%
  3. 60% of purchase price or lower = 2.90%
  4. 65% of purchase price or lower = 2.90%
  5. 70% of purchase price or lower = 2.90%

Interest only Spanish mortgage rates

  1. 50% of purchase price or lower = 3.80%
  2. 55% of purchase price or lower = 3.85%
  3. 60% of purchase price or lower = 3.90%
  4. 70% of purchase price or lower = N/A

Fixed rate Spanish mortgages

  1. Capital and repayment up to 3 years = 3.70%
  2. Capital and repayment up to 5 years = 4.25%
  3. Capital and repayment up to 25 years = 5.65%

Spanish mortgage rates are for the most part determined by the Euribor and the margin the bank add on. There are many different Euribor rates so it is important when you are comparing that you know which Euribor rate is being used.

The 12 month Euribor is the most common rate used by Spanish mortgage lenders and is also the highest. Typically banks will add on their margin of between1% and 2.5% for non-residents. If a bank was advertising “Euribor+1.75%” for example and the 12 month Euribor was 1.25% then the total rate payable – the actual interest rate would be 3.0% (1.75% + 1.25%)

However, if the bank are not using the 12 month Euribor but are instead using the 1 month Euribor then the total interest rate would be  2.20% (1.75% + 0.45%) as such, understanding exactly which index and rate the bank are using is crucial when comparing Spanish mortgage rates.

There are other types of rate the banks use such as IRPH. These rates are much less common and generally more expensive. What can sometimes happen is a bank may advertise “IRPH+0.25%” which when compared to “Euribor +1.75%” can look very attractive but is in actual fact more expensive.

Using a professional broker this dual pricing can be avoided and we can ensure you obtain the best possible rates from any lender we apply to.

To see an example of this dual pricing read our page “Why use a Spanish mortgage broker