Read our dedicated article on that subject for more recent data. It is very easy to get a mortgage in Spain. What are the documents requested? How to get your NIE in Spain? What do you need to get it? Why do you need it? For a first time since long, all the regions suffer a month on month negative growth.
The one with the smallest decreases are. No surprises, we keep the same regions as the most active ones in terms of transactions:. After a seasonally slower December, January looks even stronger vs December:. All the regions had a negative growth. Of course December is well known for being less busy all over the world. Ask us directly! Find the best Spanish mortgage rates — March update. How much deposit do I need for a Spanish mortgage? What is the interest rate in Spain?
Can foreigners get a mortgage in Spain? Can I get a Spanish mortgage? Top 8 tips for not wasting money when you buy in Spain. Property transactions in Spain in January Dutch property buyer's guide in Spain. Forward planning at the start will also give you a better idea of how much you can spend on your Spanish property and the likely future financial implications of your purchase. Leaving the financial side of your Spanish property purchase until the end will potentially leave you in a weaker position, especially if you have to raise finance in a rush, which may mean that you end up being unable to secure the best possible mortgage at the most attractive borrowing rate.
Economic conditions in Spain have been improving over the last few years and house prices are increasing in many areas, especially in the cities and popular coastal towns.
There were several Spanish banks lending to nonresidents throughout the financial crisis and other lenders that had withdrawn from the market have gradually started lending again. Competition between the lenders has led to a dramatic improvement in interest rates for non-resident mortgages, which has made borrowing a lot more attractive.
Low property prices, low interest rates on mortgages and a weakening of the Euro has led to increased numbers of UK buyers. The political problems in Greece and Turkey have also made Spain look a safer option, which helps boost tourist numbers.
With banks in Spain now adopting greater caution following the Spanish property crash, interest-only deals are no longer available. For many years, the fixed rate mortgages offered by banks in Spain were not attractive and the vast majority of mortgages signed were with a variable interest rate.
In , this has all changed and it is possible to find low fixed rate mortgages over terms of up to 25 years, but typically a maximum of. A variable rate generally means that your mortgage payments can go up or down according to movements in interest rates usually as a set percentage, as opposed to a fixed-rate mortgage which guarantees your mortgage payment each month over a set period.
Whether you opt for a variable-rate or fixed rate mortgage you will normally have to pay an early repayment charge if you want to pay off your mortgage sooner or remortgage to a new deal. But redemption penalties are low in Spain — typically 0. Redemption penalties for fixed rates are generally higher although Monger adds that Mortgage Direct can offer the same redemption penalties for fixed-rate mortgages as for those with a variable rate. It is also worth noting that home and life insurance is usually compulsory for all people looking to secure a Spanish mortgage, although some brokers can arrange mortgages where this is not the case, adds Monger.