Hi everyone,
I am looking for any information folks are willing to share about their mortgages, specifically about interest rates. For a little background, I am American and my husband is Spanish. I have my residency here. We are buying a flat at about 70% of its asessed value, which in the States would essentially be the same as putting down a 30% down payment. Our bank (El Banco de Andaluc?a, part of Grupo Banco Popular) has given us information about 2 possibilities. One is a variable interest rate at Euribor+0.55%. The fixed option would be around 7%. I know that the Euribor is currently around 4.6%. Well, I guess my main question is if anyone has heard of any lower fixed rate loans. In the States the average 30 year fixed rate loan is at 5.69% and 15 year at 5.27%, so 7% seems high to me. It seems like the banks here really are not interested in offering fixed rates; our banker was “not sure” the exact rate that he could guarantee us. I’m feeling a bit skeptical and don’t want to make such a big decision without knowing all of my options. Well, any input would be greatly appreciated!
Thanks,
Stacy

Yes I think 7% is a bit on the high side. You have to negotiate hard with the banks and get other quotes from their competitors. Some banks prefer certain types of business and so they might have better rates. As house sales have slowed so have mortgage sales so really push them! The Euribor is staring to fall so variable might be a better idea? Also watch the opening commissions and setup charges - they can vary a lot!

Hi,

I have recently spoken to a spanish company who have suggested a swiss franc mortgage which at present is about 4.3% and they say it has been stable against the euro for some time. If you more information, I can give the contact if you contact me on .(JavaScript must be enabled to view this email address)

Dave

Hi

I’m new to this forum and have just come accross your post. I work for an overseas mortgage company called Rossbank. The fixed rate you were quoted of 7% seems quite steep the fixed rates we are offering at the moment in Spain are up to 10 years fixed 4.85% you can check out our website if you would like more info ( mail for web address ) or just leave me a comment if you have any queries