Most mortgages in Spain use the Euribor plus a fixed differential to decide the rate offered to borrowers. Whilst many rates are still good buys, continual increases in Euribor rates make it even more important that borrowers seek independent professional mortgage advice.

It is vital to ensure that the lender and product chosen is not only suitable now but also protects as much as possible against future interest rate increases.

Many current Spanish mortgage holders who took out loans when rates were at a high of 6% plus, have been surprised that they have not been able to enjoy the benefit of lower or "rock bottom" rates. The reason being that the mortgage product held, contained a minimum rate clause commonly known as a "collar".

Understandably, until rates decreased, these borrowers were genuinely unaware of the clause as the minimum rate did not begin to apply until rates began to fall.  As the Euribor continues to rise albeit slowly, there is a danger of uninformed mortgage applicants selecting the lowest rate available when an alternative product with a slightly higher rate may be more beneficial longer term. 

It is therefore important that a balanced decision is made and that applicants unfamiliar with the intricacies of Spanish mortgages, seek independent specialist mortgage advice.