5 best Spanish fixed-rate mortgages for non-residents
A fixed-rate mortgage offers financial safety and predictability, as the interest rate and monthly payments remain unchanged throughout the loan term. However, this also means you will not benefit from potential decreases in interest rates. Continue reading to understand your options.
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
- 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 fixed-rate mortgages in Spain for non-residents
The average fixed-rate mortgage in Spain is 3.51%, slightly more affordable than at the beginning of the year.
- reduced payments available with a Sabadell account and insurance
- there is no threshold for the property purchase, but they prefer amounts over 70,000 EUR
- relatively quick and straightforward application process, with no need for translation for documents in English, French, or German
- loan amounts available range from 80,000 to 1,000,000 EUR
- Cajasur limits financing exclusively to the purchase of a first home in Spain for personal use, excluding investment properties or multiple property acquisitions
- loan amounts range from 100,000 to 2,900,000 EUR
- loan terms are available for periods ranging from 5 to 20 years
- for Spanish citizens, CaixaBank offers flexible mortgage options with repayment periods extending from 25 to 30 years
- HolaBank will refund the cost of the property valuation if you proceed with taking out a mortgage with them
- maximum loan-to-value (LTV) ratio ranging from 60% to 70%, depending on the selected mortgage product
- Unicaja prefers non-resident customers targeting property purchases above 200,000 EUR
- fixed-rate options may be less competitive, particularly for longer-term mortgages
- offers a wide range of mortgages tailored for new builds and renovation projects
- UCI provides a 12-month grace period, during which only interest payments are required, until the completion of the project
Comparison table created in October 2024; some rates are based on mortgage offers received by Homevest customers.
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.
Simplify your Spanish mortgage experience with Homevest Spain
Negotiating favorable mortgage terms can lead to substantial savings over the life of your loan. Having a mortgage broker who negotiate on your behalf makes this process much easier.
With Homevest, you'll be connected to experienced Spanish brokers who can help you find the best financing options for your property. Your dedicated broker will prepare your application, submit it to multiple lenders, and provide you with competitive offers.
Using Homevest is free, as the platform receives a commission from the bank upon mortgage completion.
If you haven’t found your perfect property yet, Homevest can estimate your budget to clarify your financial options. This accurate estimation helps you set a realistic price range, guiding your property search and aligning your financial expectations.
Sources used in October 2024:
- Fixed-rate mortgages in Spain
- Sabadell mortgages for non-residents
- Unicaja fixed rate mortgage for non-residents
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.
How do mortgages work in Spain for foreigners?
Learn about the types of mortgages available to foreigners in Spain, eligibility criteria, key terms, and tips for securing the best deal based on your profile.
10 best mortgage brokers in Spain in 2024
Discover the best mortgage brokers in Spain for non-residents in 2024! Find the perfect fit for your needs with detailed reviews, pricing, and use cases.
Mortgage in Spain for UK citizens: everything you need to know
Continue reading to understand everything you need to know when applying for a mortgage in Spain from the UK, from key requirements to navigating post-Brexit changes.
Best variable mortgage options in Spain for non-residents
Variable rates offer more flexibility and typically have lower prepayment penalties compared to fixed-rate mortgages. Read our guide on the best variable mortgage rate options in Spain, including information on fees, interest rates, and more.