Jan, I'm not going to be any help to you on this, however, I've just this minute caught the back end of a programme called Vista on the Majestic channel (it appears to be a channel directly associated with everything Spanish) and they were saying that fixed rate mortgages in Spain are normally for the entire period of the mortgage and not like the UK were you can tie in for 3, 4, 5, years etc. Just thought I'd mention it and I was quite surprised by this. Regards, Scoya.

PS, hope all is going well for you with your villa.

It has been suggested that there will be a downturn in the Spanish economy next year if the current regime manages to stay in power continuing until the next scheduled general election in 2008.

In the past this would have indicated a rise in interest rates but as any fluctuation of interest rates is now tied to the EU it is unlikely that this will be the effect despite the best efforts of the a failed socialist government.

I am certainly will not be making any long term investments at fixed rates for the foreseeable future but whether the converse holds true for people seeking mortgages I wouldn't like to predict.