In December 2023, mixed-rate mortgages became more affordable, dropping to 4.26%
In December 2023, mixed-rate mortgages became more affordable, dropping to 4.26%

Mixed mortgages in Spain for non-residents: a good option?

Before making a decision, it is recommended that you compare different options and explore the available alternatives. Negotiation is a common practice in Spain, and the great news is that you don't have to handle it alone.

Delia Mihuț
Written by Delia Mihuț
Published at 2024-01-24T11:32:18Z
Last updated at 2024-01-29T09:47:58Z
Readtime 3 minutes

Unsure about choosing a fixed or variable rate for your mortgage in Spain? A mixed rate offers a combination of both elements.

This option combines a fixed rate's stability with a variable rate's subsequent flexibility, balancing predictability and adapting to changing market conditions.

Find out everything you need to know in this guide. 

What is a mixed mortgage, and how does it work?

A mixed-rate mortgage combines a fixed interest rate for the initial period with a variable interest rate for the remaining term. 

Initially, you pay a pre-agreed fixed rate. After this period, the rate becomes variable, based on the Euribor plus a predetermined margin specified in the mortgage contract.

Advantages and disadvantages of a mixed mortgage in Spain

Advantages
  • mixed rate mortgages got cheaper in December 2023, dropping to 4.26%
  • balance between the predictability of a fixed-rate mortgage and the potential savings of a variable-rate mortgage
Disadvantages
  • once the mortgage switches to a variable rate, there is a risk that interest rates might increase

Best-mixed mortgage options in Spain for non-residents

The best-mixed rate mortgage in December was 4,26%, slightly cheaper than the previous month (5,05%).

According to Homevest data, one of the most competitive mixed mortgage offers was issued in December by UCI, for a Singapore resident. The offer featured a rate for a property valued at €385,000 with a 62% loan-to-value (LTV) ratio.

The mixed mortgage offer has a 30-year term. The initial interest rate is fixed at 4.99% for five years, followed by a variable rate of 1.59% plus Euribor 6m. The offer also includes a 1% account opening commission.

Bank Mixed rate mortgage Key features
CaixaBank 3,64%
  • accepts a wide range of currencies, including EUR, GBP, USD, CAD, CHF, DKK, NOK, SEK, BGN, HUF, and PLN, but mixed product availability depends on the branch
  • up to 1% interest rate reduction with selected products
Unicaja 5,19%
  • excellent choice for customers aiming to purchase properties over 200,000 EUR
  • the mortgage application is 100% digital, except for going to the notary office
Banca March 4,26%
  • ideal option for clients purchasing high-value properties on the Balearic Islands
  • mortgage term of up to 20 years (the mortgage has to be paid off at the age of 75 years)
Cajasur 4,74%
  • a great option for buying a home in Costa del Sol and nearby Andalusian coasts, with good mortgage deals available
UCI 5,22%
  • mortgage options for individuals looking to purchase new-builds or fixer-uppers
  • UCI allows mortgage management with your existing bank account

Homevest conducted on January 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.

The best variable rate mortgage in December was 6.1%, despite the Euribor decreasing. If you prefer the predictability of fixed monthly payments, a fixed-rate mortgage is worth exploring. 

Interested in a side-by-side comparison? Explore our comparison between fixed-rate vs. variable rate mortgages to make an informed decision.

Compare the best mortgage offers with Homevest

Before making a decision, it is recommended that you compare different options and explore the available alternatives. Negotiation is a common practice in Spain, and the great news is that you don't have to handle it alone.

Homevest can efficiently manage this process for you, requesting and negotiating mortgage offers from top Spanish banks on your behalf. By choosing Homevest, a dedicated mortgage broker will review your application and submit it to various lenders, so you receive competitive mortgage offers.

One of Homevest's customers, a French resident, bought a property in Costa del Sol with a mortgage. Homevest helped him find the best deal from Spanish banks for a property worth up to 850,000 EUR.

The customer was keen on obtaining the most favorable terms and conditions. To achieve this, Homevest explored all available options and negotiated effectively with Spanish banks to secure a deal that worked to his advantage.

As a result, he got competitive offers from top banks like Sabadell, Santander, Cajasur, and Unicaja. The first offer was received within four days, featuring an effective rate of 5.61%. The most competitive offer, with an effective rate of 4.96%, was secured after 19 days from Unicaja, allowing him to finalize a 510,000 EUR mixed interest rate mortgage for his desired property in Spain.

 

 

Every mortgage application is evaluated on a case-by-case basis. 

Continue reading to learn everything you need about getting a mortgage in Spain, including requirements, interest rates, and info for non-resident buyers.

 

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.

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