Tancrede de Pola (OP Columnist)
MARBELLA’S property market is feeling the ripple effects of the ECB’s 2025 rate cuts.
A steady series of 25-basis-point reductions has lowered key rates, directly impacting Spanish mortgages.
The 12-month Euribor, crucial for variable-rate mortgages, has notably declined, offering relief to homeowners.
Here at The Finance Bureau, we’ve seen banks adjusting their offerings. Non-resident fixed-rate mortgages now range from roughly 2.75% to 3.5%, while variable rates are offered as low as Euribor + 0.85%. Mixed-rate mortgages, with an initial fixed period, are gaining popularity, providing a balance of stability and potential savings.
However, global events are casting longer shadows. The resurgence of protectionist policies, notably potential tariffs and trade disputes stemming from Donald Trump’s political influence, adds a layer of uncertainty.
Such policies could disrupt global trade flows and potentially reignite inflationary pressures. This could lead the ECB to reconsider its current easing stance, potentially reversing the downward trend in interest rates.
For those considering mortgages in Marbella, this means a need for vigilance. While the current climate favours borrowers, future global economic shifts could alter the landscape. The Spanish economy, though currently strong, remains susceptible to external shocks.
Therefore, whether seeking a fixed, variable, or mixed mortgage, it’s imperative to consider both current ECB trends and potential global economic headwinds.
The current relatively low Euribor rates (coming down after the shock of the pandemic) offer an excellent opportunity for those getting onto fixed-rate mortgages, but the future is uncertain.
At The Finance Bureau, we recommend consulting with experienced professionals to navigate this complex environment and secure the best financial solutions for your needs.
