Spanish mortgage rates
Before applying for a mortgage, it is important to know what the Spanish mortgage rates are and everything related to this sector on the rise. In this article we want to share with you useful information so that you know more about mortgages in Spain
What is there to know about Spanish mortgage rates?
In Spain, the fixed and variable mortgage rate has a penalty for early repayment. If paid off during the first 5 years, the fine will be 0.3% of the total amount to be paid. After that period, the penalty is reduced to 0.25%.
If it is a fixed-term mortgage, you must take into account a penalty rate of a maximum of 2.5%. Today, the fixed-term are the most common form of mortgages in Spain.
Other factors on mortgages in Spain
The deposit required for a mortgage in Spain is usually higher than a standard mortgage in the United Kingdom. Normally, banks do not grant non-residents financing above 80%. This means that you must have money saved to be able to cope with the expenses. But not all banks operate the same, hence the importance of comparing mortgages for non-residents offered by each entity.
In Spain there are two entities that offer mortgages for non-residents: Banco Sabadell and Banco Popular. In Banco Sabadell, during the first year of the loan, the interest to pay is 4.85% and for the rest of the period the mortgage lasts Euribor + 2.80% in the case that a home and life insurance is contracted. If these binding products are not contracted, the interest payable will be Euribor + 3.55%.
Banco Popular has a mortgage loan for non-residents that finances the same as most entities, 70% of the value of the home. In this case, the maximum repayment term is 20 years.
If you need to know more about any aspect related to mortgage rates in Spain, you need to have the help of professionals who will advise you at all times before taking the step of acquiring a property in this country.