In Spain there are many self-governing regions, each with their own local governments, so it will be impossible to information each and every situation ranging from Valencia to Bilbao, Barcelona to Seville, however this article will try to give a comprehensive introduction of the general scenario, rather than a gloss-over of the main points.
Maybe the very first point to mention is that in Spain there are two main financial entities that you can use for a home mortgage from. These entities are often easier to gain a home loan from, although conditions can frequently be much easier controlled to the favour of the caja, rather than those guidelines rigorously set down by the Banco de España.
It's exceptionally typical in Spain for an interest rate to be used to your loan amount on a yearly basis, with a revision each calendar year, around the exact same date as you sign your home loan. This implies that although interest rates may fluctuate, as they tend to do, then if you happen to sign your mortgage in the "greatest peak" of interest, then you will pay that quantity of interest for the whole year - even if interest rates go down. Home mortgage "trackers" working on a month to moth basis, understood across the world, are unknown in Spain.
Just to make things more complicated, there are then 2 different types of indexes your bank or building society can decided to employ regarding your policy. The Euribor is the European Rates of interest, although it deserves keeping in mind that within the Eurobor, there is a different (always higher) Euribor Mortgage rate.
The 2nd Rates of interest that may be applied is the more stable IRPH, which takes an average of the previous 4 months Euribor then computes the rate by doing this. Any loan from a bank or building society will charge the client (that's you) one of these 2 rates, plus anywhere in between 1-3%, depending on the risk, size of the property, readily available guarantors, and so on (keep in mind, here my example here is for first time buyers).
Any loan from either entity typically has a 1% opening cost on the net cost, and the same for any cancellation prior to the time of the loan expires - loans are normally provided for 30 years, although in current years, specific banks have provided loans of up to 50 years, or those which will be inherited by next of kin/offspring. This suggests that swapping and altering home loans over banks is nearly impossible in Spain, given the expenses involved.
Possibly the first point to discuss is that in Spain there are two primary financial entities that you can use for a mortgage from. It's very common in Spain for an interest rate to be used to your loan sum on a yearly basis, with a revision each calendar year, around the exact same date as you sign your mortgage. This indicates that although interest rates might vary, as they tend to do, then if you take place to sign your home loan in the "greatest peak" of interest, then you will pay that amount of interest for the whole year - even if interest rates go down. Mortgage "trackers" working on a month to moth basis, understood across the world, are unknown in Spain.