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.
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 February, dropping to 4.96%
- 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 February was 4,96%, slightly cheaper than the previous month (5,29%).
According to Homevest data, one of the most competitive mixed mortgage offers was issued in February by Sabadell, for a Croatia resident. The offer featured a rate for a property valued at €200,000 with a 70% loan-to-value (LTV) ratio.
The mixed mortgage offer has a 25-year term. The initial interest rate is fixed at 2.75% for one year, followed by a variable rate of 4.98% plus Euribor 6m. No commission was charged for account opening as part of the offer.
Homevest conducted on February 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 February was 5.40%. 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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