In the 90s, mortgage loans were given to practically anyone who requested one to buy newly-built property, as long as they presented the right documentation. Back then, the interest rate was fairly high: from 12.5% to 14.5% annually.
Between the end of the 90s and the beginning of the 2000s, there was a rather drastic fall in the annual interest rate to 7%. With the arrival of the construction boom in Spain in 2001, the interest rate fell further to 5-5.5% annually, and stayed there until 2005-2006.
The next reduction (to 3.5-4% annually) took place before the 2008 economic crisis. After the crisis began and the EURIBOR fell (the average interest rate from the Central European Bank), mortgage rates fell again to 2% and are currently between 1.75% and 2.5%, depending on the bank. Another change that occurred during the crisis from 2008 to 2014 was that the banks introduced new requirements for people requesting mortgages: presenting a tax statement, property titles, and certificates from banks where they have their accounts. Starting in this period, banks began conducting verifications in a more orderly, meticulous way. Loan capital was reduced to 50-60% of the sale price.
Our company works with the major Spanish banks: Banco Sabadell, BBVA, and La Caixa. Over the past few years, we’ve signed brokering agreements with these banks. We guide our clients through the entire process of getting mortgage loans to buy property. Over the past 10 years, 100% of our clients who have requested mortgage loans have been granted them.