Spanish fixed-rate mortgages cheaper in January
Quick overview: Explore the latest Spanish mortgage rates, and discover the best places to buy a holiday home in 2024.
After a slower December, home buyers are back in the market, and we’re happy to see that banks have also been making more competitive offers.
Now could be the perfect opportunity to consider buying that holiday home you've been dreaming of.
Fixed-rate offers have been very competitive to non-residents
A fixed-rate mortgage might be ideal if you value the predictability of fixed monthly payments and are looking for the lowest available rate.
In January, we saw a drop in the best average mortgage rate to 2.75% from December's 3.75%.
This rate came from a Sabadell fixed-rate mortgage for a €225,000 property with a 70% LTV, offered to a resident in Croatia. The rate starts at 2.75% for the first year and then goes up to 3.65%. Getting this rate also means taking home and life insurance with Sabadell.
The average interest rate in Spain dropped to 4.91% in January, down from 5.47% in December 2023. Among the standout offers, Sabadell presented the most appealing fixed rate at 2.75%, and Cajasur led with the best variable rate at 5.46%.
Is it worth buying a holiday home in Spain?
While it offers benefits like warm weather, cultural richness, and potential rental income, it also has challenges, such as upkeep costs and property value changes.
In January 2024, there were big differences in house prices across different parts of Spain. In Alicante, the average price was 1,982 EUR for every m². In Barcelona, it was around 3,907 EUR. Málaga had the highest prices at 2,762 EUR.
However, the most pronounced price variations were witnessed in the Balearic Islands. Formentera showcased soaring prices at 7,837 EUR per m², contrasting with Petra, where prices averaged 1,908 EUR per m².
📌 Whether you've recently started exploring mortgage options or have a specific property in mind, our guide provides insights into the best places to purchase a holiday home in Spain, along with prices and considerations for non-resident property buyers.
📌Choosing between fixed or variable-rate mortgages? Our comparison guide, tailored to current market trends, helps you weigh stability against flexibility to make an informed choice.