Spanish Mortgage rates
Spanish mortgage rates can be based upon a variety of indexes but the most common used is the EURIBOR. This is a floating variable based on the European Central Bank Rate and you will usually see mortgage interest rates quoted as “1.5% above Euribor.”
To complicate things there is actually more than one Euribor rate. There is a daily, weekly, monthly, 3 monthly, 6 monthly and 12 monthly Euribor rate so you need to know which one is being quoted in order to compare overall rates. The most common used in mortgage lending is the 12 monthly (which is also the highest rate out of those listed.)
Spanish mortgage lenders take the 12 month Euribor (in this example at 1.25%) and then add their own margin. So if the margin is 1.5% then the overall interest rate applied to your Spanish mortgage is 2.75% (1.25% + 1.5%.)
In general, if your mortgage is based on the 12 month Euribor then you will pay the same amount every month for 12 months at which point the bank will update your payments and bring them into line with any changes in the 12 month Euribor over the past year. The same applies if your mortgage is therefore based on the 1 month Euribor except this time your rate is updated every month.
Lowest possible Spanish Mortgage Rates March – April 2010
Capital repayment Spanish mortgages
| Up to 50% | 2.10% |
| 50% to 55% | 2.15% |
| 55% t0 60% | 2.20% |
| 60% to 70% | 2.30% |
Interest only Spanish mortgages
| Up to 50% | 2.40% |
| 50% to 55% | 2.45% |
| 55% to 60% | 2.50% |
| 60% to 70% | N/A |