In Spain there are numerous self-governing regions, each with their own local governments, so it will be difficult to information each and every situation varying from Valencia to Bilbao, Barcelona to Seville, however this article will try to give a comprehensive overview of the basic scenario, rather than a gloss-over of the bottom lines.
Maybe the first point to discuss is that in Spain there are 2 main monetary entities that you can use for a home mortgage from. These entities are in some cases much easier to gain a home mortgage from, although conditions can often be easier manipulated to the favour of the caja, rather than those rules rigorously set down by the Banco de España.
It's exceptionally typical in Spain for an interest rate to be used to your loan amount on an annual basis, with a modification each calendar year, around the very same date as you sign your mortgage. This implies that although interest rates might change, as they tend to do, then if you occur to sign your home loan in the "greatest peak" of interest, then you will pay that quantity of interest for the whole year - even if interest rates go down. Home mortgage "trackers" working on a month to moth basis, understood across the world, are unknown in Spain.
Just to make things more complicated, there are then 2 different types of indexes your bank or building society can opted to use concerning your policy. The Euribor is the European Interest rate, although it's worth noting that within the Eurobor, there is a different (always higher) Euribor Home mortgage rate.
The second Rate of interest that may be applied is the more stable IRPH, which takes an average of the previous 4 months Euribor and after that determines the rate in this manner. Any loan from a bank or building society will charge the customer (that's you) among these 2 rates, plus anywhere in between 1-3%, depending upon the threat, size of the home, available guarantors, etc. (remember, my example here is for very first time purchasers).
Any loan from either entity normally has a 1% opening fee on the net rate, and the same for any cancellation prior to the time of the loan expires - loans are generally given for Thirty Years, although over the last few years, specific banks have given loans of approximately 50 years, or those which will be acquired by next of kin/offspring. This implies that switching and altering home loans over banks is almost difficult in Spain, provided the costs included. A 1% cancellation charge in one bank followed by a 1% opening fee in the 2nd (even if this is waived) implies that there has to be a significant saving on the basic conditions used by another entity for it to be beneficial considering. It nearly becomes a stock market video game, playing the possibilities of the possible increase in inflation - something that couple of individuals saw coming in the latter part of 2008.
Perhaps the very first point to discuss is that in Spain there are two primary financial entities that you can use for a mortgage from. It's very common in Spain for an interest rate to be used to your loan sum on a yearly basis, with a revision each calendar year, around the very same date read more as you sign your mortgage. This indicates that although interest rates may vary, as they tend to do, then if you happen to sign your home mortgage in the "highest peak" of interest, then you will pay that quantity of interest for the entire year - even if interest rates go down. Home loan "trackers" working on a month to moth basis, understood across the world, are unknown in Spain.