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Find the best Spanish mortgage rates – October 2018 update

20 Oct
2018

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What are the best Spanish mortgage rates you can get?

Updated October 2018

In order to get the Spanish mortgage rates, you need to start with the real data: the data of the last mortgages issued in Spain. This will help you to know what are the best Spanish mortgage rates right now. Of course, don’t forget, if you are a foreigner you have to remember that as your assets are mainly abroad, your rate will be higher than the one reported here.

The “Instituto Nacional de Estadisticas”, INE, just released the Mortgage statistics of Spain for the month of July 2018. It is very informative and will give you the current market rates.

The growth is very strong: we saw an increase of 14.6% for the mortgages issued in Spain vs the same month one year ago… And a 39% growth in mortgages issued in Extremadura!!!

 

Current financing conditions for housing

  • Average mortgage has an interest rate of 2.59% (vs 2.63% last month)
  • Average mortgage rate decreased by 6.3% vs 1 year ago
  • The lowest rate ever is 2.59%! YES, the current rate reached this month!
  • Mortgage duration is 22 years
  • 62.3% have variable interest rates
  • 37.7% have fixed interest rates
  • The average rate for variable rate mortgages is 2.32%, 7.3% less than 1 year ago,
  • The average rate for fixed-rate mortgages is 3.07%, 5.7% less than 1 year ago,
  • The average amount issued per mortgage stands at €125,120, an increased of 2.1% vs last year.
  • 29.287 mortgages were issues + 14.6% vs last year.
  • 3.6 € Bn of mortgages issued in July 2018, +17% vs last year.

 

Do you want to price your own mortgage?

Check our ultimate mortgage pricer.

To help you out, we have created an easy to use table of the monthly repayments depending on the amount you want to take for a mortgage. If you want to go deeper into details, use our calculator to fine tune your mortgage to your situation and you will find out what would be your monthly payments, mortgage schedule,…

 

If you are about to invest in Spain, it is always interesting to compare the financing conditions with your returns’ prospects, check our last article on that subject: What return will you make on your Spanish Property investment in 2018?

 

310.096 mortgages issued in 2017

During the year, we had more than 310.000 mortgages issued in Spain. You should compare that to the number of properties sold of 520.000 which means, in our opinion, that the market is not overleveraged. Last year, the number of mortgages issued was 283.000, that is a 10% growth year over year.

 

 

The top 4 regions with the biggest growth for the number of mortgages issued are:

  • Extremadura, +38.9% to 457 mortgages.
  • The Valencian Community, +28.1% to 3.276 mortgages
  • La Rioja, +28.1% to 283 mortgages
  • Madrid, +27,5% to 5.713 mortgages

 

The top 4 regions with the biggest growth in terms of amounts of mortgages issued are:

  • La Rioja+77.3%
  • The region of Murcia, +43%
  • Cantabria+39.8%
  • The Valencian Community+39%

 

You are about to buy a nice second home in Spain. Do you want to know how to get the best mortgage rates on your Spanish property?  Even as a foreigner? Check our detailed paper on this subject.

 

Do you want to have access to our local partners to get a quote on a mortgage?

Click on the image and make a request.

 

 

As a reminder, here were the statistics for earlier months:

The Spanish mortgage rates situation in June 2018

  • Average mortgage has an interest rate of 2.63%
  • Average mortgage rate decreased by 6.8% vs 1 year ago
  • The lowest rate ever is 2.62% reached in March 2018
  • Mortgage duration is 23 years
  • 62.9% have variable interest rates
  • 37.1% have fixed interest rates
  • The average rate for variable rate mortgages is 2.19%, 11.3% less than 1 year ago,
  • The average rate for fixed-rate mortgages is 3.25%, 0.5% more than 1 year ago,
  • The average amount issued per mortgage stands at €123,896, an increased of 5.1% vs last year.
  • 30.600 mortgages were issues + 3.9% vs last year.

The top 3 regions with the biggest mortgages growth:

  • Madrid, +23,2% to 6.399 mortgages,
  • Aragon, +10.6% to 957 mortgages,
  • Extremadura, +18.4% to 616 mortgages.

 

The Spanish mortgage rates situation in May 2018

  • Average mortgage has an interest rate of 2.63%
  • Average mortgage rate decreased by 4.3% vs 1 year ago
  • The lowest rate ever was 2.62% in March 2018
  • Mortgage duration is 22 years
  • 61.9% have variable interest rates
  • 38.1% have fixed interest rates
  • The average rate for variable rate mortgages is 2.4%, 9.8% less than 1 year ago,
  • The average rate for fixed-rate mortgages is 3.12%, 6.6% more than 1 year ago,
  • The average amount issued per mortgage stands at €117,044, an increased of 2.8% vs last year.
  • 31.166 mortgages were issues + 7.3% vs last year.

While the top 4 regions in terms of annual growth were:

  • The Canary Islands, +70,9% to 1.984 mortgages,
  • Extremadura, +18.5% to 570 mortgages,
  • Pais Vasco, +18.4% to 1.783 mortgages,
  • Navarra, +17.3% to 441 mortgages

 

Check the Spanish report from the INE.

Looking for a mortgage or a local expert in Alicante, Malaga, Valencia, Madrid, Barcelona,…? Ask our network of local partners directly!

Stéphane 

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

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