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
- 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
Mixed-rate mortgages typically begin with a fixed interest rate for the initial 3, 5, or 7 years, after which they transition to a variable rate.
4.80% in the first ten years
2.04% + Euribor remaining years
- 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
3,00% first three years
1,60% + Euribor in the rest of the years
- quick process, no need to translate English documents
- potential 0.75% rate reduction with bonus products
2.85% first 6 months
3.85% next 9 years
1.94% + Euribor remaining years
- prefers applicants who have selected a property
- an interest rate discount of up to 1.10% is available from the seventh month when you add eligible products
Comparison table created in November 2024
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.
Apply for a mortgage in Spain with Homevest Spain
Before making a decision, start by assessing your affordability. This will help you determine the maximum amount you can secure from a Spanish lender. Negotiation is common in Spain, and the best part is, you don’t have to handle it alone.
Homevest connects you with experienced Spanish brokers who can help you find the best mortgage options, including negotiating favorable terms. They’ll assist in preparing your application, submitting it to multiple lenders, and comparing offers.
As long as you’ve already found a property, this valuable service comes at no additional cost, speeding up your process as brokers prioritize your case.
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.
Sources used in November 2024:
- Mixed rate mortgages in Spain
- Unicaja mixed rate mortgages for non-residents
- Sabadell mixed rate mortgages for non-residents
- Santander mixed rate mortgages 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.
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