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Find the best mortgage rate in Spain – July 2018 update

06 Aug
2018

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What are the best mortgage rates you can get in Spain? Updated July 2018

In order to get the best rate, you need to start with the real data: the data of the last issued mortgage rates in Spain. 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 May 2018. It is very informative and will give you the current market rates.

The growth is strong: we saw an increase of 7.3% for the mortgages issued in Spain vs the same month one year ago… And a 70% growth in mortgages issued in the Canary Islands!!! Not bad.

 

Current financing conditions for housing

  • 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.

 

Do you want to price your own mortgage?

Check our ultimate mortgage pricer and learn what are 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 number of home mortgages registered in the registers of the property in December was 20,691.

 

The top 4 regions with the biggest mortgages growth in May 2018 are:

  • 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

 

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 mortgage statistics for the month of April 2018:

  • Average mortgage has an interest rate of 2.62%
  • Average mortgage rate decreased by 16.5% vs 1 year ago
  • The lowest rate ever was 2.62% in March 2018
  • 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 2.42%
  • The average rate for fixed-rate mortgages is 3.15%
  • The average amount issued per mortgage stands at €123,256, an increased of 9.1% vs last year.
  • 28.724 mortgages were issues + 34.2% vs last year.

 

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

  • The Balearic Islands, + 66.7% to 1.090 mortgages,
  • Madrid, +62.4% to 6.018 mortgages,
  • Castile – La Mancha, +54.2% to 1.200 mortgages,
  • Murcia, +52.7% to 771 mortgages.

 

Check the Spanish report from the INE.

Looking for a mortgage or a local expert in Spain? Ask us directly!

Stéphane 

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

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