The Naked Agent Spain

Banks in Spain tend to have one set of conditions for residents, and another for non-residents.  For non-residents, Spanish mortgages are proving a hard task, as some banks are starting to reduce their lending amount (Loan to value), down form 70% or 80% to 60%.  Interest rates seem to be hovering at 1% plus over Euribor, although some banks for non-residents will offer 0.75% over Euribor.

However, for those of you who are resident in Spain and contemplating buying, now may not be a bad time to think about securing a better mortgage rate with the banks. or remortgaging your existing mortgage.   Providing you are good candidate for a mortgage (ie: you have all the right paperwork, and have decent enough lump sum to put in to the purchase (20% to 30%)) , you should be able to secure good rate (even as good as Euribor +0.31%?!) for the long term.   There is a huge saving over the entire life of your mortgage to be made from having a low margin mortgage rate over the Euribor, eg compare Euribor + 1.25% to a low rate of Euribor +0.45%,  I am not just referring to the next two years, but for the next 10 to 20 years.  So while your actual monthly payments may be high now, if you take a long term view, securing a better rate today, will definitely help you in the future, especially if interest rates start to fall.  Have a play with with our mortgage calculator, and type in different interest rates using the Euribor figure on our website.

Naked Agent Tip: Providing you are in a comfortable financial position, if you can lock yourself into long term mortgage with a low margin over the Euribor, you will save yourself literally thousands of pounds over the life of the mortgage.   Negoatiate hard with the banks and see who will give you the best deal.