Insight into the Spanish property market, guides to help you make informed decisions, and a directory of real estate professionals and home service providers from a source you can trust.
This is a website for buyers, owners, and sellers of property in Spain, offering reliable information and resources to help you get things done with confidence. It is run by Mark Stücklin, author of the Spanish Property Doctor Column in The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins.
When you buy or sell property in Spain the sums of money are large, perhaps one of the biggest financial decisions of your life. The high transaction costs you will face like taxes and commissions only make the decision more important to get right. And when you own property in Spain you face a host of extra challenges to manage, and costs to control. Unfortunately, the Spanish property market is opaque and full of pitfalls, and notoriously unprofessional. Buying and selling property in Spain is not a decision to be taken lightly, and you may find it much easier to buy than sell if you don’t take care. In this market it is crucial to do your own research, and don’t rely exclusively on people who are trying to sell you something – let’s just say they might not have your best interests at heart. Spanish Property Insight is the only independent source of information and analysis of the Spanish property market. Don’t even think about buying or selling property in Spain without subscribing to Spanish Property Insight.
The latest Spanish mortgage and Euribor newsEuribor (12 months), the interest rate most often used to calculate mortgage repayments in Spain, fell to 1.06 in July, the lowest level on record, as illustrated by the chart above.
As a consequence of the latest fall in Euribor, borrowers who have already taken out 40-year mortgages could see their montly repayments fall by as much as 17pc. New borrowers, however, will not benefit as much, if at all, because banks are dramatically increasing their spreads on new loans.
The following table from analysis by Idealista.com, a Spanish property portal, shows how much monthly payments will fall for mortgages resetting annually and every six months. The first column on the left gives the numbers of years remaining on the mortgage, the middle column gives the percentage fall in monthly payments for mortgages that reset every six months, and the right-hand column gives the same figure for annually resetting mortgages.
Another month, another drop in new mortgage lending
Meanwhile, new mortgage lending, a key indicator of the health of the property market, plunged year-on-year another 30.5pc in May (to 26,007), according to stats from Statistics Institute (INE). Year-to-date (5 months), new mortgage lending is down 39.4pc by volume, 45.4pc by value, and the average new mortgage value is down by 10pc. New mortgage lending has now fallen for 25 consecutive months, partly because of a credit crunch, and partly because of weak demand.
Everything you need to know about property in Spain
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