5 best Spanish fixed-rate mortgages for non-residents

If the predictability of fixed monthly payments is important for you and you’re seeking the lowest rate currently available, a fixed-rate mortgage might be the right choice.

Explore the benefits and drawbacks of this type of loan, and find out what offers are available for non-residents seeking financing in Spain.

What is a fixed-rate mortgage, and how does it work?

A fixed-rate mortgage is a type of loan where the interest rate remains constant throughout the entire term of the loan. This ensures that your monthly payments remain unchanged.

Advantages and disadvantages of fixed-rate mortgage in Spain

Advantages

• at the moment, fixed-rate mortgages are often cheaper than variable-rate ones
• financial safety and predictability, as the interest rate and monthly payments remain the same throughout the loan term
• long-term stability, as you won’t be affected by fluctuations in interest rates

Disadvantages

• the mortgage repayment period is often shorter, at approximately 20 years, compared to a variable mortgage, which can be 30 years
• if you want to switch mortgages in the future, banks are allowed to charge an early redemption fee of up to 2% of the outstanding balance of a fixed-rate mortgage

How do you choose the best-fixed mortgage rate?

Assess your financial health, including income, expenses, debts, and credit score. Being in a stronger financial position could lead to better rates, enhancing your ability to negotiate your mortgage terms.

Think about your long-term plans - shorter terms mean higher monthly payments but less total interest. In comparison, longer terms have lower monthly payments but more total interest. If you plan to move or refinance soon, a shorter-term mortgage may be more beneficial.

A mortgage simulation can provide you with an estimate of your monthly repayments and potential terms. Although it is non-binding and indicative, it can assist you in forming a clearer understanding of what to expect.

Quick comparison of the 5 best fixed-rate mortgages in Spain for non-residents

The average fixed-rate mortgage in February was 4.25%, slightly more expensive than the previous month.

Homevest conducted on March 2024 a cost comparison by evaluating the bank's offers for its clients and calculating the average effective interest rates over the past three months.

A variable mortgage could be the right choice if you prefer a lower initial rate and a more extended repayment period. You might also consider a mixed-rate mortgage that combines both fixed and variable rates. 

Explore the available alternatives and stay updated on the latest market deals regarding Spanish mortgage rates for non-residents. 

Homevest helps you compare mortgage offers in Spain

Negotiating your mortgage terms can lead to significant savings over the life of the loan. Having Homevest negotiate on your behalf can ease this burden.

Homevest works to make banks compete for your case, to get you the best mortgage terms. Your mortgage broker will prepare your application, submit it to multiple lenders, and provide you with competitive offers.

Homevest collaborates with top Spanish banks, including UCI, Sabadell, Unicaja, and CaixaBank, and offers services in 9 languages such as English, Spanish, Swedish, and German.

Sources used in April 2024:

1. Fixed-rate mortgages in Spain

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.