16 Feb, 2024 @ 07:20
1 min read

Have a variable mortgage in Spain? Your bills will begin to fall soon – according to the national bank

How much of my salary do I need to put aside for rent or mortgage costs in Spain? Figures reveal HUGE differences between the British expat hotspots|
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MORTGAGES are set to become less of a burden for millions of families this year, the Bank of Spain has said. 

Governor Pablo Hernandez de Cos said on Thursday that the European Central Bank (ECB) is set to reduce interest rates – unless there is an unexpected shock. 

This, he said, will have a particularly positive effect on those with variable mortgages. 

READ MORE: Can I get a 100% mortgage in Spain if I’m British or from the USA?

How much of my salary do I need to put aside for rent or mortgage costs in Spain? Figures reveal HUGE differences between the British expat hotspots
Cordon Press image

During a speech at the CUNEF university, he added: “In fact, this has already been incorporated into the one-year Euribor and mortgages in Spain are going to begin to see some relief in terms of the burden paid by families who had it at a variable rate.”

He insisted that the relief would not be immediate and there was ‘still some time’ before homeowners see a reduction in their monthly payments. 

The ECB predicts that inflation will continue to fall this year, before reaching around 2% between 2025 and 2026. 

De Cos added: “It is true that we are not being explicit about when it will occur, I believe that there is still some time left for that, but I also think that it is very important to emphasise that the inflation objective of the European Central Bank is 2%.”

Laurence Dollimore

Laurence has a BA and MA in International Relations and a Gold Standard diploma in Multi-Media journalism from News Associates in London. He was news editor for all print editions of the Olive Press from 2016 to 2019 taking on the role of Digital Editor between January 2020 and February 2021.

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