Fixed rate mortgage offerings for Spain

This week saw the launch of some very favourable fixed rate loans in Spain.

Historically fixed rates in Spain have been offered at well above the variable rate and have not been an attractive alternative for those buying in Spain.

In complete reverse to this normal state of affairs one bank in Spain has launched a range of fixed rates that are actually below their normal first year premium rate and are only slightly above the current variable which relies heavily on the 12 month Euribor staying at is current low levels.

Given margins above Euribor being charged by Banks in Spain are now on average 3.25% to 3.5% a good long term fix to hedge against future Euribor increases, which ultimatley will happen over a period of time, looks to be sound judgement which will pay off in the long term.

What are the problems associated with fixed rates in Spain

Whilst applying for a fixed rate mortgage in Spain, from a financial stability basis is looking to be a viable option the process of application remains fraught with difficuties.

Applications for fixed rate loans in Spain have levels of uncertainty applied to them which include what rate you will finally be offered, what your redemption penalty would be if you redeem early, and the timescale it takes to resubmit an application if finally the rate being offered is not what you were expecting.

What are the best rates available

You can currently apply for
15 years @ 4.2%
20 years @ 4.45%
25 years @ 4.60%
30 years @ 4.65%

Read the full article : New fixed rate mortgage offerings in Spain