What types of mortgages does Spain have?
Mortgages in Spain are standard annuity mortgages. You pay one monthly amount that includes both interest and repayment. The interest portion in this is larger in the beginning and decreases later, because more has been repaid. Thus, an installment-free mortgage is not possible.
You can have a fixed-rate, variable or mixed mortgage. After the fixed-interest period expires, your monthly amount will be recalculated. With a variable interest rate, the interest is linked to the European interest rate (EURIBOR) plus a risk premium.
Repaying a mortgage loan is often also possible. However, there are conditions attached to this. For example, the bank may charge penalty interest on the amount repaid. Always get good advice before taking out a loan.
Taking out a mortgage loan does have its advantages. You don't have to tie up all your savings in a house and the bank also takes a critical look at the paperwork surrounding your purchase.