Spanish banks are struggling hard to get hold of the new homeowners in Spain.
The low interest rate reduces the banks’ earnings base, and it intensifies competition for the new customers – especially those with dream dreams. Since 2008, the Euribor interest rate index has fallen steadily to today being negative. Therefore, for the past few years, no banks have had an interest in providing variable rate home loans, as the income base with a falling interest rate is just falling and falling.
Therefore, banks now offer mortgages with a fixed interest rate of up to two percent. It was completely unthinkable just a few years ago. Each bank has its criteria for maturity, disbursement and loan size, but most banks today offer fixed rate mortgages of 2.00 to 2.25 percent over 15-30 years against a payout of 30 percent.
Contact us for a free analysis of your options for taking out real estate loans in Spain. We are ready with professional help, advice and guidance.