If you are looking to buy your Spanish property, a good option is to fund it through a fixed interest rate mortgage. Gone are those fixed mortgage with an interest above 5%. Currently you can get a fixed rate mortgage below 2%, Bankinter currently offers a 10 years mortgage at 1,8%, Bankoa (Credit Agricole group) at 1,9%. The number of Spanish fixed rate mortgages contracted has doubled since one year.
Therefore, a fixed mortgage is a good option because you will know the exact cost you will pay for the entire life of the mortgage.
In Spain, variable rate mortgages representing 90% of Spanish mortgages according to latest stats released by the INE in October 2015. The main reason is due to relative ignorance from borrowers on this type of mortgage and very few banks offering fixed mortgages in the past.
If the value of the variable Spanish interest rate benchmark (Euribor 1 year) rise will happen in the coming years and stays at higher values that what we are seeing now, so a fixed rate mortgage is a good option to consider…