Can mortgage terms be extended?
Those who are having difficulties meeting their ever increasing monthly repayments will be happy to hear about a new law that has been passed and will shortly be implemented here in Spain. You can increase the term of your mortgage thereby reducing payments. There is a catch however, you can only take out a mortgage until the age of 70, therefore if you are 35 the maximum mortgage term would be 35 years. If you are 45 the maximum term would be 25 and if you are 60 the maximum term would be 10 years. According to Antonio Argandoña, professor of economics at the Navarra University IESE Business School as reported in the Christian Science Monitor, these measures will only have a limited effect. “Extending mortgage terms may help families who already have loans, but it’s going to impede access to new credit, since the banks aren’t going to be as interested.” Most Spaniards have variable interest loans at low prices, with the average loan at EURIBOR + 0,76%, between 1% – 3% lower than what
