What is the Spanish mortgage interest rate?

Most Spanish mortgages are variable rates linked to the yearly Euribor (European inter-bank offered rate) plus a margin. For example, with Euribor at -0.37% at the start of 2019, and variable-rate mortgage rates ranging from 1.8–3%, you could theoretically pay just 1.43%.

Are mortgages cheaper in Spain?

After the doom and gloom of Brexit and Coronavirus, we finally have some good news for Britons (and anyone else) hoping to buy a property in Spain right now: Mortgages in the country are now cheaper than they’ve ever been before.

What is the average mortgage in Spain?

The average mortgage duration is 24 years 33% have variable interest rates 67% have fixed interest rates. The average rate for variable rate mortgages is 2.11%, The average rate for fixed-rate mortgages is 2.7%.

Is it difficult to get a mortgage in Spain?

Spain has a very competitive mortgage market and as a result, there’s plenty to choose from when it comes to loans. However, non-residents buying Spanish property with a mortgage have more limited access to loan types and conditions.

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How much deposit do I need for a Spanish mortgage?

For a Spanish mortgage, you will generally need a minimum deposit of 30% of the property’s purchase price, with borrowing rates currently starting around 2% (lower for premium clients). “The maximum mortgage for non-residents is 70% of the purchase price or valuation, usually depending on which is lower.

How much can I borrow for a Spanish mortgage?

In Spain a EU-citizen can normally borrow up to 70%, sometimes 80%, of the purchase price of the property, which is set as security. The term is normally up to 30 years even though there can be limitations due to the age of the loan taker, as the banks want the mortgage to be paid off by the age of 75.

What are the pitfalls of buying property in Spain?

Some of the common pitfalls of buying a property in Spain include deposit, purchase tax, issues with off-plan properties and properties being built illegally. During your research into buying a property in Spain you will have come across many stories of purchases in Spain gone wrong.

Which UK banks offer Spanish mortgages?

Banco Bilbao Vizcaya Argentaria (BBVA) is one of the few banks offering mortgages to UK borrowers purchasing properties in the UK and Spain.

How do expats get a mortgage in Spain?

Let’s now dive into each of the 6 steps you will need to follow in order to get a mortgage in Spain as an expat:

  1. Prepare and submit the required documents. …
  2. Receive a mortgage pre-offer. …
  3. Open a bank account. …
  4. Compare and accept the offer. …
  5. Agree with the offer. …
  6. Mortgage completion.
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Can I get a 100 mortgage in Spain?

Mortgages for non-residents in Spain are typically 60-70%, but you can get up to an 100% mortgage on a bank repossesion home when you buy with Iberian Properties. … Bank Repossessions naturally attract attention as they are associated with genuine bargains.

Can I get a mortgage in Spain after Brexit?

Getting a mortgage in Spain as a UK citizen

Non-Spanish residents are usually able to get a mortgage on a property in Spain provided they can prove they have a good credit score. After Brexit, the amount a UK buyer can borrow may decrease from a maximum of 70% to 60 or 65%, in line with other non-EU nations.

Can you get a 90 mortgage in Spain?

As is the case in most countries, Spanish banks require loan applicants to fulfil a series of conditions and supply plenty of paperwork. … The maximum loan can be as high as 90% for principal home loans (although 80% is much more common) and for up to 30 years.

Will property prices fall in Spain?

Spanish property price forecast for 2021

According to opinion given by the credit rating agency Fitch, the price of housing in Spain will fall by 4-6% over the next year, before stabilising in 2022.

What do I need to get a Spanish mortgage?

Documents to apply for a Spanish mortgage

  1. NIE number.
  2. Proof of employment or income.
  3. A pre-agreement with the seller.
  4. Proof that the property tax is paid to date.
  5. Details of your current debts and mortgages.
  6. Copies of all your existing property deeds (in Spain and elsewhere)
  7. Records of your current assets.
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Do Spanish banks do credit checks?

Do banks do credit checks? Yes. They will carry out a Spanish credit check (called a CIRBE) to see if the applicant(s) have any existing debts in Spain and they will also ask foreign buyers to provide an independent credit report for their home country.

How long does it take to buy a house in Spain?

The shortest time that the buying process can take is approximately a week to two weeks if everything is going in your favour and your independent legal adviser is focusing mainly on your transaction, although in reality a purchase is likely to take from four to six weeks from the moment you find the property and agree …