Which is the best home loan?
Who can I take out a mortgage with?
Normally they are granted by financial entities, usually banks or other financial credit establishments. In the interest of everyone’s safety, these entities (including UCI, Unión de Créditos Inmobiliarios, S. A., E.F.C) are subject to the supervision of the Bank of Spain, in terms of both the control and the development of their activity and the protection of their clients’ rights.
You can make overpayments or partial repayments in advance: money that is paid that is more than the agreed monthly amount to reduce the debt. Repaying all of the debt in one go is called redemption or full early repayment.
What types of mortgages are there?
Normally mortgages are grouped depending on the type of interest that applies.
Bearing this in mind, mortgages can be fixed rate (whereby you always know what you are going to pay), tracker (whereby the repayment is regularly calculated based on a base rate at that moment in time) or mixed (in which at the beginning a fixed rate is paid as the interest rate does not change, and then switches in the remaining years to a variable repayment, which can go up or down, depending on the standard variable rate).
Depending on your situation you will have to choose the best mortgage loan for your needs.