How to get a mortgage in Spain?
After the economic crisis, the Spanish credit landscape has changed. The Spanish real estate market is recovering quickly after years of uncertainty. How to get a mortgage in Spain? It is a very common question among many people who want to take advantage of this good economic moment in Spain and want to acquire a property
What to keep in mind to get a mortgage in Spain
The interest applied to mortgages in Spain is calculated in relation to the base rate established by the European Central Bank. In Spain, banks can establish different charges and terms, although they have their limits. Therefore, it is very important to compare what each bank or saving bank offers and choose the best mortgage.
Although fixed-rate mortgages are growing, many mortgages sold in Spain (for Spaniards and foreigners) have a variable rate. With this, the monthly mortgage payments vary according to the base rates established by the European Central Bank.
Some banks offer mortgages at a fixed rate, which leads to paying a higher interest in less time, although if interest rates increase, a person with a fixed-rate mortgage may pay less than one with a variable rate. There are also mixed mortgages, formed with a fixed interest payment period and a variable rate for the rest of the amortization time.
All the banks carry out a credit study to the client because it is necessary for the bank to know the income it has and its banking history. If the income is fixed or prospects are good prospects for revenue to continue or increase, it is possible to find much more favorable mortgage conditions.
It also depends on the type of property to be acquired and the amortization time of the mortgage. In addition, there are entities that finance up to 80% of the appraisal of housing, being one of the reasons why it can be very interesting to find a professional in Spain who knows the Spanish real estate market and allows the client to obtain important opportunities at the time to acquire a property.