Spanish Mortgage interest rates

Like many I have a Spanish Mortgage ( With Caja Murcia) & I would like to Know if anybody knows how the interest works , as we have seen in UK our interest rate has gone down to 0.5%  meaning we are paying the lowest mortgages for many a year . However my Spanish mortgage has remained the same  , Can I expect it to go down after the first year which I understand is Fixed .Has anyone completed a year & seen their payments decrease ?

Thanks

Tim

Hi Tim

The mortgages are generally done on the 12month Euribor rate plus a margin, eg  + 1.5%. The 12 month euribor rate changes daily and today stands at 1.236%, so anyone taking todays rate would be paying interest at 2.736% . We have a review every 6 months and the last one was in September, as I understand it they used the Euribor rate as it was in July to recalculate the repayments as it's two months prior. Anyway our monthly payment went down by 100 euros so happy days.

Some mortgage products work on the 6 monthly rate and some monthly but the majority are based on the 12 month rate.

You would need to check your mortgage details to see when your review is due but the link below shows you the euribor rate as it changes daily.

Simon

http://www.euribor-rates.eu/euribor-rate-12-months.asp

This message was last edited by jonew on 29/09/2009.

Thanks for that Simon much appreciated .

Mine is Euribor plus 1.5% , Hopefully looking at a reduction soon