40 years’ mortgages in Spain

The monthly fee is usually lower, but banks do not offer them to young people under the age of 35 years 40 years’ mortgages.

An average volume of 108,000 Euros and a period of 22 years.

These are the amount and the medium-term that the Spanish people request when they hire a mortgage to buy a house, according to the latest data from the National Statistics Institute (INE). The majority of the mortgages that the financial entities offer tend to have a maximum period of 20 and 30 years. Some of them advertise the possibility of extending to 35 years, and in some cases they have specific mortgages with an amortization period up to 40 years.


Some of these mortgages are designed by banks to finance the sale of apartments of your property or Sareb (Company for the Management of Assets proceeding from Restructuring of the Banking System),
a corporation entity created to manage the sale of real estate from the financial entities that have been nationalized or have required financial assistance. Banks also offer these 40-years’ property loans to buy other houses.

But they always have a condition: that the age of the holder when finishing the loan is not older than 75 years.


In this way, someone who would like to request a loan to buy a house and want to pay for it in 40 years he or she should be 35 years of age or less.

The main advantage of signing a mortgage with a period of 35 years or more is that the monthly fee may be relatively low, especially in the current context of negative interest rates. Mortgages with a very long period can be interesting for young people who want to buy a property and can deal with an affordable monthly fee and with professional prospects to improve and increase their income in the future.


The idea would be to redeem each year capital in advanced with the objective of reducing the period and to pay the mortgage before the 40 years agreed. The disadvantage is that you end up paying higher interest rates and therefore at the end of the loan you would have been paid significantly more than capital requested. But the greatest danger, certainly, is the uncertainty about the evolution of interest rates in a period of time as broad as 40 years.


With a Euribor currently at negative levels, someone who requests a 40 years’ mortgage should bear in mind that interest rates will rise and should calculate how much he could pay monthly in the case of that official reference data reached record levels.


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