A good time to buy a house in Spain as mortgage rates continue to drop

The Euribor interest rate tracker falls to third lowest level in history, making loans cheaper across Europe

The Euribor, which tracks interest rates on loans by European banks, has reached its third lowest point ever, making thousands of mortgages cheaper for expats looking to buy property in Spain. This is the third monthly reduction in the Euribor, bringing the figure to -0.498%, a rate which has only been beaten in January and February of this year.

Explainer: What is the Euribor?

This means that on average, for a standard mortgage in Spain of 120,000 euros over 20 years, borrowers can save around 7 euros a month on their mortgage repayments. This is good news for foreigners who want to buy a house in Spain, and experts don’t foresee any great changes in the Euribor level any time soon. In fact, the Euribor level is expected to remain below zero, where it has been since 2016, until at least 2024.

Meanwhile, inflation in Spain has now reached a nine-year high of more than 3%, although the European markets are set to put a freeze on price hikes at least the end of 2022 to give the economy a chance to recover from the financial crisis caused by Covid.

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