Madrid mortgage quote: 8.14% fixed for 15 years on a €1,311,000 purchase

A

arlo.west

Property investor
Choosing on the wrong figure could be costly if I refinance or sell earlier than planned. I have a Madrid mortgage quote at 8.14%, fixed for 15 years, against a purchase of roughly €1,311,000. The initial headline was more appealing than the final terms once the lender’s fee and LTV band were applied.

How are others making a fair comparison between Spanish lenders? I can look at APR, but I am inclined to calculate the money spent over several realistic holding periods and the balance left at each point. One option costs considerably more upfront yet allows greater flexibility with overpayments. If I stay for 15 years that may be worthwhile; if I leave early, the fee, portability conditions and exit costs may dominate.
 
Fifteen years should not be the only comparison period unless you are genuinely likely to keep this loan that long. The expensive-fee quote may work well if you remain in place and make regular overpayments, but it could be the worse choice if you sell after five years and cannot take the mortgage with you.

I would price both consequences using the same loan amount: upfront charges, payments made, capital still outstanding and any cost of leaving or overpaying. Run the figures at a plausible early exit date as well as year 15. That will show whether the flexible terms have real value or merely compensate for a large initial charge.
 
Is the mortgage fully repaid after 15 years, or is 15 years only the fixed-rate period? That missing detail matters because the second version leaves you with rate-reset risk afterward. Also, what loan amount and LTV tier are being quoted against the €1,311,000 purchase price?

I wouldn’t dismiss the expensive-fee option purely on APR. If you expect substantial overpayments, its flexibility could outweigh the upfront fee—but only after checking exactly how the early-repayment terms are written.
 
I’d put both quotes into a simple table with the same loan amount and timeline: upfront fees, monthly payments, remaining balance after 5, 10 and 15 years, and the cost of selling, refinancing or overpaying at each point. Then run one version with no refinance assumption. Otherwise a high rate can look tolerable only because the comparison quietly assumes a cheaper exit later.
 
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