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Euribor mortgage interest rates hit new record low

Property purchases financed by mortgage loans have increased dramatically over the last 12 months, as interest rates hit new record low.

Over 50 per cent of new home purchases in Spain are now financed by mortgage loans for the first time in a decade, due in large part to record low monthly repayments. Most Spanish mortgage repayment terms are calculated with reference to the Euro Interbank Offered Rate (or Euribor) which fell to an extremely low level of -0.19 per cent in early 2018. The rate then gradually shifted towards zero, and has now plummeted to -0.354 per cent in the last two months.

The low Euribor rate will favour existing home-owners, who will see reduced monthly repayment quotas on existing variable rate loans. Both fixed and variable rate terms will become even more attractive to new home-owners in Spain. While most analysts agree that a 25-year fixed term mortgage are currently very attractive, the increasingly low Euribor rate means that variable rate repayments will continue to be lower than fixed rate instalments for quite some time. Financial experts expect the current lending climate to continue, and fall even further for another year or so.

With mortgage loan rates in negative territory, there has never been a better time to invest in a Spanish property if you are seeking financial assistance. The Costa del Sol in Southern Spain is a hot-spot for property buyers seeking to relocate or invest in a holiday home abroad. Domus Venari have access to a wide range of properties for sale , to suit a variety of needs and budgets and can help you every step of the way find your dream property.

Take control of the home buying process by following Domus Venari's 5 Simple Steps to ensure you get the most out of your house hunting and purchasing experience abroad.


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