The cost of buying a property in Spain is reduced

Banco Halifax Hispania has reduced the rate on its variable Euro mortgages with immediate effect.

Repayment mortgage rates of 4.633% for loans up to 60 per cent and 4.733% per cent for loans up to 70 per cent of the value of the property are now available.

The reduction in interest rates comes as good news for those people looking to buy a property in Spain. Recent research from Mintel states that 800,000 Britons now own a second home abroad. Spain was the most popular location amongst more than four in ten respondents who had either already bought or who were looking to buy abroad.

The demand from British people for property in Spain has been fuelled by the demand for low rate Euro mortgages and the boom in low-cost, budget airlines.

Ian Smith, Head of European Operations at Halifax said: "When it comes to owning that holiday home in the sun, Spain is certainly the favoured location with British people, so this latest reduction in interest rates is really good news."

There are currently 19 Banco Halifax Hispania branches throughout Spain. All dealings between Banco Halifax Hispania and its customers can be carried out in English. In addition, there is also an English speaking helpline within the UK for customers who wish to sort out their financial options prior to arriving in Spain. The helpline answers queries about what's involved in buying in Spain and will guide customers through the application process.

Banco Halifax Hispania also has an approved panel of Spanish solicitors (Abogado) and surveyors who are not only fluent in English, but who also have local knowledge and experience of acting for British customers.