Mortgage news Spain
Non resident mortgages Spain continue to decrease as the overall market falls. General economic pressures in Europe. Interest rates and political changes are all playing their part. 
Best buys for non resident mortgage applications in Spain
May 2024 total mortgage completions in Spain
May saw a downturn in total Spanish mortgage completions.
Mortgages in Spain completed were 27.435. This was a reduction of 19.9% on the month. Yaer to date annually the number of new Spanish loans is down 18.2%.
The average loan amount was up slightly at 141.457 euros.
Interest rates averaged 3.25%. Of this fixed rate averages were 3.42%. Variable rates were 3.07%.
In total 55.4% of all new Mortgages in Spain completed on a fixed rate basis.
Non resident mortgages in Spain
Activity from foreign buyers requiring a non resident mortgage in Spain is lower, first part of 2024.
In a change to 2023 far more non resident buyers are looking at off plan. New builds cannot obtain a mortgage in Spain during the construction stage.
Any Spanish mortgage can only be arranged for the final payment. The process of making an application can start around 3 months before completion.
The downside of committing to a new build is therefore a guaranteed mortgage cannot be ascertained at outset.
How we can help
As an independent mortgage broker, focusing on non resident Spanish loans we can help mitigate risk. But not remove it. Before a buyer contracts to buy an off plan we can check that under current circumstances a client fits affordability ratios for the final payment. We cannot make an application so there is no guarantee but we can assess the likely outcome. Subject to no major changes in Spanish Bank criteria. Also to borrowers circumstances. During the construction stage.
When buying a resale a non resident Spanish mortgage can be underwritten before any financial commitment is made.
Applicants who will need a Mortgage in Spain to complete an off plan should therefore consider the risk carefully. Maybe opt for a resale with certainty of finances. Borrowing for an off plan should be a preference not a requirement.
Other news
In other news the Euribor continued to fall slowly. However an unexpected rise in inflation has thrown doubt over further ECB rate drops in the near future.
Overall average rates for non resident Spanish lending exceeds that for the total market. This is because Spanish lenders adapt each application to financial risk.
By nature second homes bought by foreigners are seen as higher risk. In comparison to those bought by Spanish nationals as a main residence.
On top of this the total profitable relationship with a non resident is is lower than with a resident. Other products like pensions, car insurance, personal loans, life and sickness and redundancy insurance are much less likely to be contracted. Unless you live and work in Spain.
On average fixed rates over 20 years will be in region of 4%. Margins above Euribor 1.5%.
12 month Euribor
Julys 12 month Euribor. To which most loans in Spain are linked is 3.526%