Spanish Interest Rates
SPANISH INTEREST RATES are set by the European Central Bank (ECB) and are at the time of writing 2.5%. This rate is reviewed once per month and is adjusted on average twice a year although recently rates have been cut aggressively with the last rate change being a 0.75% reduction on 04th December 2008.
If you think your mortgage rate is too high and wish to review your options and look for a lower rate, we may be able to help by subrogating your Spanish Mortgage
Live ECB rates can be viewed here under the column “Variable rate tenders Minimum bid rate”
For the average consumer, the rate that concerns them is the EURIBOR Rate which determines how much interest they are going to pay if they have a Spanish Mortgage or Mortgage in Spain.
The Euribor is always higher than the ECB and fluctuates every day.
Live Euribor rates can be viewed here.
The rates of concern to most people with a Spanish mortgage are the 3 month, 6 month and 12 month Euribor rates as most Spanish mortgages are fixed to one of these.
To find out how much you will have to pay, you need to know which rate your bank is using - 3, 6 or 12 month. Then you need to find the banks rate above Euribor as this is what your mortgage interest rate is going to be.
In the banks literature it is usually shown as Euribor+0.75% for example. Your rate is calculate by simply adding the 0.75% to the Euribor rate.
The interest rates offered to mortgage clients range from as low as Euribor+0.35% for a non-resident up to as much as Euribor+2.5%. The difference this makes to your monthly mortgage payments and the overall amount you pay back can be enormous.
Because there are such large differences in the Spanish Interest Rates when taking a mortgage, it is very important that you use the services of an unbiased, independent broker who can source the best rate for you, which means you don´t pay more than you need to.
What happens if I take the wrong mortgage?
