Nowadays foreign citizens that apply for a mortgage to buy a property in Spain can expect to receive 50%-60% of the value of the property
from the spanish banks that depends on the creditworthiness of a buyer. How many years can you expect?
In general the most mortgage terms in Spain run up to 25 years
Mortgage payments should not exceed 35% of a borrower's net annual income. The types of mortgage in Spain:
- variable rate mortgages: mortgage payments vary according to the base rate set by the European Central Bank (EURIBOR).
- fixed rate mortgages: mortgage payments remain unchanged during all the mortgage term. These mortgages normally have higher interest payments in the short term but don't run a risk of the increasing of payments in the future like the variable rate mortgages.
- mixed rate mortgages: mortgage payments remain unchanged during the first 5-10 years and vary afterwards.
The average interest rate for the residential property is 3-4%, for commercial property – 4-5%.