Spanish Mortgage News

Content on behalf of Mortgage Direct SL

This year has been our strongest year so far in terms of the number of clients that have signed up with us by the end of the third quarter. The conditions for purchasing property in Spain are very good right now. Whilst prices are still falling the number of foreign buyers has increased dramatically and are above pre-crisis levels.

This time last year when the Euro crisis was dominating the headlines, clients were understandably nervous about investing in Spain for fear that the single currency could collapse at any moment. That fear has subsided significantly, major currencies such as Sterling, the Swiss Franc and the Scandinavian currencies have all stabilised against the Euro. In addition, positive economic data from countries around the world including the US, China and the UK gives buyers confidence to invest abroad.

Market & Bank Update

In May, the European Central Bank (ECB) reduced its core interest rate from 0,75% to a new record low of 0,5% and the ECB President, Mario Draghi, has reiterated many times recently that rates will stay low now for an extended period. Several banks we work closely with have informed us that they expect to improve their rates for non-residents in the coming months. They have already improved them for residents. This is very positive news and we sense that a gradual loosening of conditions will occur in the near future, although it must be said that banks remain cautious where non-residents are concerned.

Data correct at the time of writing * Most non-resident mortgages are based on the annual Euribor with a loading of 2,75 – 4,5%. The margins now vary considerably depending on the bank in question and the customer profile.

Data correct at the time of writing
* Most non-resident mortgages are based on the annual Euribor with a loading of 2,75 – 4,5%. The margins now vary considerably depending on the bank in question and the customer profile.

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