Spanish mortgage and housing markets
Spanish mortgage market is well established under the mortgage laws. The interest rate in Spanish mortgages is generally calculated on the basis of the base interest rate set by the central bank of Europe. Yet then the mortgage leaders in Spain can set the interest rate according to their convenience. This has caused a wide variation in the interest rates of Spanish mortgages. Though they vary, Spanish mortgages have the least interest rate as compared to other parts of Europe. The low interest rate is the main reason for the growth of housing market in Spain. This has helped in a growth in mortgage loans also.