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.
Spanish lenders provide a range of interest rate options for non-residents, including variable, fixed, and mixed mortgages. If you're seeking a lower initial rate and a more extended repayment period, a variable mortgage might suit you.
Continue reading to discover the best variable mortgage solutions for non-residents and learn how to negotiate your terms.
A variable mortgage has an interest rate that changes over time based on market conditions.
These mortgages often start with an interest rate lower than fixed-rate mortgages. After a specified period, known as the adjustment period, the interest rate may vary, either increasing or decreasing, based on market changes.
The interest rate of a variable rate mortgage is adjusted periodically, every six months or annually.
The revised rate is directly influenced by changes in the Euribor and is usually calculated as a combination of this benchmark rate plus a fixed percentage. Your mortgage payments could vary periodically, depending on how Euribor evolves.
Choose a variable mortgage if you expect changes in your financial situation. This could include a potential increase in income or the ability to pay off the mortgage early.
Variable rates offer more flexibility and typically have lower prepayment penalties compared to fixed-rate mortgages. For tailored advice, consult a financial advisor. They can provide guidance based on your financial circumstances and the current economic context.
When comparing variable rate offers, remember that the interest rate for the first year is typically fixed at a promotional rate.
Homevest conducted on April 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 fixed-rate mortgage could be the right choice if you prefer financial safety and predictability, without the need to worry about interest rates increasing. A mixed-rate mortgage, blending fixed and variable rates, is also a viable option. Explore the available options and stay informed about the latest market offerings.
Read on to better understand your options when applying for a variable mortgage rate from abroad.
The Sabadell variable mortgage is popular for those seeking competitive rates and favorable terms.
Highlights of this mortgage options include:
Bear in mind that application outcomes may vary between branches, as each operates with its own rules.
If you're considering buying property in the south of Spain, particularly in the Andalusia area, the Cajasur variable mortgage might be an option worth exploring.
Some key details to consider:
The Caixa variable mortgage is a standout choice for financing in Spain, offering competitive terms within the market.
CaixaBank provides up to a maximum of 70% financing for second homes in Spain and offers:
The Unicaja variable mortgage offers an excellent choice for EU, US, and UK citizens seeking flexible terms.
Key details to consider:
The UCI variable mortgage might be attractive if you're considering buying new constructions or fixer-uppers. UCI offers:
Comparing mortgages for a Spanish property can help you effectively negotiate your terms. Negotiating your mortgage rates is standard practice, and this is where Homevest can assist you in securing the most advantageous deal.
Homevest makes banks compete to offer the best mortgage terms and works to reduce the time it takes to receive an offer to four days.
By choosing Homevest, you'll benefit from priority service from the banks, ensuring you secure your mortgage in time for the property signing.
Historically, variable-rate mortgages were more affordable due to the higher risk assumed by borrowers. Over the last year, fixed-rate options have become cheaper, aligning with banks' anticipation of a decrease in interest rates over time. Explore the current Spanish mortgage rates and decide what’s best for you.
If you're interested in comparing fixed vs. variable rate mortgages for non-residents, continue reading to learn about the pros and cons and other factors before making your choice.
Sources used and checked:
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.
In addition to the deposit, you should expect to pay taxes associated with your purchase. Explore insights on the deposit amounts and considerations when purchasing a property in Spain as a UK resident.
Researching the available options is an important step that requires a considerable amount of time, especially since you don't want to rush into making a hasty decision. Keep reading to discover how long you can expect this process to take.
A platform for mortgages
Homevest is a pan-European mortgage and homebuying platform. We strive to bring the mortgages in the 21st century.