AVAILABLE INTEREST RATES

There are different mortgage interest rates available. If you choose the fixed rate mortgage the monthly installment and interest charge for your property won't change during the repayment period, regardless the fluctuation on the interest rates market. If you buy property in Spain with fixed rate mortgage you will normally have a shorter period of repayment, about 12 years, and the commission for early repayment will be higher.

In contrast to the fixed rate mortgage, a mortgage with a variable interest rate includes variation of the repayment interest rate for your Spanish property. The annual interest rate will change according to the interest level.

Banks and building societies in Spain offer two different indexes, EURIBOR and IRPH ( Indice de Referencia de Prestamos Hipotecarios ), so that you can choose the one that suits best your needs.

If you want to raise a mortgage you have to take into consideration that you will have to pay approximately 10% -12% of the purchase price of your property for associated taxes and fees. These costs contain notary and property fees (0,5% of the mortgage amount) as well as register fees. They all depend on the total amount of the bank loan. The costs include also the administration office fee (approximately 150,25 ? ), insurances and taxes that are required on all legal documents. You will also have to pay stamp duty (1,8% of the total mortgage amount), transfer tax if you are buying a second hand property in Spain (6% - 7%, depending on the province where you are buying), IVA (VAT) if you are buying a new built property (usually 7% of the value executed by deed), lawyer fee (1% of the Spanish property price) and the property insurance.

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