The present and future of mortgages in Spain

The Spanish mortgage market is in a state of flux due to different aspects:

  •  Interest rates are rising, which is making mortgage repayments more expensive.
  • The Euribor, the most widely used index for calculating variable mortgages, is at positive levels for the first time since 2008.
  • Demand for mortgages remains high, but is moderating due to rising interest rates.
  • Interest rates are expected to continue to rise in the short term, but to stabilise in the medium term.
  • Developments in the housing market: The housing market is expected to remain stable, with moderate price growth.
  • Government measures: The Spanish government has taken measures to help mortgage holders in difficulty, such as extending the repayment period for mortgages.

Future of mortgages:

Fixed rate mortgages are expected to be more popular than variable rate mortgages. Mortgages with longer repayment periods are also expected to become more common. On the other hand, banks are expected to be more demanding when granting mortgages.

If you are thinking of buying a home, it is important that you compare different mortgage offers and choose the one that best suits your needs.

It is important to make sure that you can afford the mortgage repayments, even if interest rates rise.It is advisable to take out life insurance and home insurance to protect your home.

At Cala Gaviota we have a team of real estate professionals with extensive experience in the area ready to provide you with the best service for both holiday rentals and long term rentals.

Join The Discussion

Compare listings

Compare