Spanish Banks Offer Lowest Mortgage Rates Since January 2023

Spanish banks are currently offering mortgages at their lowest rates since January 2023, even as credit concessions have decreased by 6.8% in the first quarter of 2024. Despite the overall decline in lending, the attractive mortgage rates present an opportunity for homebuyers and those looking to refinance.

Why this matters: The current mortgage rate environment in Spain has significant implications for the country's housing market and economy as a whole. As mortgage rates continue to fluctuate, it may impact consumer spending and confidence, which could have a ripple effect on the broader economy.

Santander, one of Spain's largest banks, has recently increased the cost of its fixed-rate mortgage range available through brokers for the second time in less than a week. Residential fixed-rate deals will rise by up to 0.26 percentage points from May 3, while buy-to-let deals will see an increase of up to 0.22 percentage points. Santander's current five-year fixed rate for residential purchase or remortgage stands at 4.4% with a €999 fee, available for borrowers with at least 40% equity in their property. The bank's two-year fixed rates currently start from 4.79% with a €999 fee, also at 60% loan-to-value.

Other major lenders in Spain, such as Nationwide Building Society, have also unveiled new fixed-rate mortgage deals following rate increases of up to 0.25 percentage points. Despite the rate hikes, both Santander and Nationwide remain close to the top of the best-buy tables for two and five-year fixed rates for purchase and remortgage.

NatWest currently offers the cheapest fixed rate for remortgage at 4.77% with a €1,495 fee at 60% loan-to-value. Lloyds Bank, on the other hand, offers the besttwo-year fixed ratefor purchase at 4.61% with a €999 fee, also at 60% loan-to-value. However, it is important to note that the Lloyds Bank deal is a direct-only offer and not available through brokers.

As the Spanish mortgage market continues to evolve, potential borrowers are advised to carefully consider their individual circumstances and seek professional advice before making any decisions. With rates at their lowest levels since January 2023, now may be anopportune timefor those looking to secure a competitive mortgage deal in Spain.

Key Takeaways

• Spanish banks offer lowest mortgage rates since Jan 2023, despite 6.8% decline in credit concessions.
• Santander increases fixed-rate mortgage range by up to 0.26 percentage points.
• NatWest offers cheapest fixed rate for remortgage at 4.77% with €1,495 fee.
• Lloyds Bank offers best two-year fixed rate for purchase at 4.61% with €999 fee.
• Now may be an opportune time to secure a competitive mortgage deal in Spain.