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MORTGAGE THINK TANK: Riding the Eurozone’s easing tide but will Trump’s tariffs upset the markets and affect interest rates?

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MARBELLA’S property market is feeling the ripple effects of the ECB’s 2025 rate cuts.

A steady series of 25-basis-point reductions has lowered key rates, directly impacting Spanish mortgages.

The 12-month Euribor, crucial for variable-rate mortgages, has notably declined, offering relief to homeowners.  

Here at The Finance Bureau, we’ve seen banks adjusting their offerings. Non-resident fixed-rate mortgages now range from roughly 2.75% to 3.5%, while variable rates are offered as low as Euribor + 0.85%. Mixed-rate mortgages, with an initial fixed period, are gaining popularity, providing a balance of stability and potential savings.

However, global events are casting longer shadows. The resurgence of protectionist policies, notably potential tariffs and trade disputes stemming from Donald Trump’s political influence, adds a layer of uncertainty.

Such policies could disrupt global trade flows and potentially reignite inflationary pressures. This could lead the ECB to reconsider its current easing stance, potentially reversing the downward trend in interest rates.

For those considering mortgages in Marbella, this means a need for vigilance. While the current climate favours borrowers, future global economic shifts could alter the landscape. The Spanish economy, though currently strong, remains susceptible to external shocks.  

Therefore, whether seeking a fixed, variable, or mixed mortgage, it’s imperative to consider both current ECB trends and potential global economic headwinds.

The current relatively low Euribor rates (coming down after the shock of the pandemic) offer an excellent opportunity for those getting onto fixed-rate mortgages, but the future is uncertain.

At The Finance Bureau, we recommend consulting with experienced professionals to navigate this complex environment and secure the best financial solutions for your needs.

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KGM Actyon – Much To Like In This New SUV

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kgm-actyon-–-much-to-like-in-this-new-suv

KGM Actyon. Credit: KMG

Sometimes a car can turn out to be somewhat of a quandary. Take the new KGM Actyon, KGM was formerly SsangYong and the Actyon is an SUV that sits between the Torres and Rexton.

There’s much to like about the Actyon including excellent build quality, including a superb paint finish, standard equipment levels and, although subjective, a striking and stand out style. However, there’s also a couple of things that would irritate longer term.

Power comes from a 1.5-litre, 4-cylinder turbocharged petrol unit mated to a 6-speed automatic. This is the first of the irritations in that the normal refined drive is rather broken under acceleration. The engine has a lot to haul and the transmission seems to take an age to catch up pushing the engine revs high. It just doesn’t seem, or drive, like a good match.

This is a shame as under more relaxed driving it’s a smooth and refined machine. That engine and transmission combination would also account for the poor fuel consumption which during my time with the Actyon averaged, in mixed driving, 27 mpg. Not great!

Thankfully there’s much more to like than dislike with the Actyon. The paint finish on my test car was superb with the flake in the metallic black finish popping. The interior is extremely well finished from the leather upholstery to the suede trim.

Standard equipment is generous to say the least with heated and cooled front seats, heated rear seats, auto lights and wipers, powered seats, keyless entry and start, power tailgate, intelligent cruise control, TomTom navigation, Apple CarPlay and Android Auto along with wireless phone charging and more. Even given the €45,843/£38,649 price tag it’s a voluminous list.

To say there’s space inside the Actyon is an understatement, it is extremely spacious and with the comfortable seats it’s a rather nice place to be on any journey. The slightly curved touchscreen is much more integrated than many of the ‘bolt-on’ looking iPads we’re used to seeing on most cars and the Actyon dash looks far classier than rivals as a result.

The touchscreen is annoyingly slow to react but on the plus side it’s easy to switch off the driver annoyance…sorry assistance…features. Leave them switched on and there is more bong than Big Ben, and they’re far too sensitive often giving little idea why the car doesn’t like what you’re doing.

All told the Actyon feels nicely premium despite some reviewers thinking it variously cheap to okay, certainly I’ve seen worse on equivalent priced rivals. Add the build quality, striking style and the fact it will be a rare sight and it will appeal to those tired of lookalike cars. The downside is likely to be residuals but even more so the poor fuel consumption. I’m sure KGM will address the touchscreen issues and hopefully the engine gearbox combination and poor fuel consumption.

Model tested was UK-specification and equipment levels and prices may vary in other markets

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MULLINS IT OVER: From Spanish property madness bureaucratic blind spots, life abroad isn’t all sunshine and sangria

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By Charlie Mullins

I’VE no regrets about relocating to Spain a year ago, but there are times when it really hits home that you’re squatting in someone else’s country where you don’t get to make the rules.

It’s a bit like post-Brexit Britain, except – whatever the politics of it – the UK can’t just up sticks and move.

We still need to trade with the EU, but now we don’t get a say on the rules. Genius!

Where I’m going with this is the bonkers idea from Spanish PM Pedro Sanchez to slap a whopping 100% tax on non-Spanish, non-EU citizens buying property.

Utter madness if you ask me, and I’m told it’s got a snowball’s chance in hell of becoming law.

Clearly, Señor Sanchez is trying to calm the anti-tourist, anti-second-home crowd by showing he’s on their side.

The good news is that, unlike Brits in 2016, Spanish voters won’t rise up against foreigners… they know which side of their pan rebanado the olive oil is drizzled on!

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Speaking of housing problems, I couldn’t believe what happened to one Scandinavian expat woman recently – some crafty scammers managed to swipe her flat out from under her. The first she heard of it was when she started getting threatening letters ordering her to leave. Talk about bad news in the post.

What I don’t get is how a forged Colombian legal document can allow gangsters to flog your place from under you! If you buy a stolen car you don’t get to keep it, so why is it different when it’s a flat?

It does sometimes feel like expats get second-rate service from the local authorities; meanwhile, back in the UK, it seems the government bends over backwards to help immigrants – the more illegal, the more help, or so it often appears.

I suppose some of us might do better out here if we made more effort to learn the language, but Spanglish does the job well enough for me. Strangely, I hear that back in the UK, Labour are trying to bring in a new law making immigrants take an English test before they can get any sort of visa to stay.

Who knows how that’s going to work. Will the Royal Navy start handing out test papers to illegals on the small boats – and if they fail, it’s a one-way ticket back to France? Next thing you know, Keir Starmer’s Labour lot will be paying to send private English tutors into asylum hotels, just to make sure the illegal immigrants living on the taxpayer’s pound are up to snuff – so they can apply for more benefits!

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LIFE (AND DEATH) IN SPAIN: Michael Coy examines how funerary rites differ from those in the UK

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DID you know that Spain’s constant good weather is attributable to an Atlantic Ocean patch of high air pressure?

It’s true.

We fall within the “Azores High”. Long may it continue!

We’re in June, with gorgeous blue skies above us, so let’s talk about death.

There are some interesting differences between the British and Spanish ways of death.

Lung cancer is much more prevalent in Spain (25,000 people a year die of it, compared to half that number in the UK). It’s almost certainly because of smoking.

Today, a lot of Spanish people still reach for their fag packet in the middle of a conversation. The Spanish idea of ‘cutting down’ is to switch from Marlboro to a cheaper brand, like Ducados.

Thirty years ago, EVERYBODY smoked. All the time. On trains, in lifts, in bed. And that is still showing up in the mortality statistics.

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Another thing – the Spanish don’t feel our social embarrassment. When they hear that your Uncle George bought the farm last week, they simply say “Pesame mucho” (‘it weighs heavily on me’) and go on talking about the Barcelona match.

The Irish tradition of the ‘wake’ used to happen in Britain, too. People used to die at home, and family members would sit through the night, keeping “Death Watch” over granny, laid out on the kitchen table.

A very shy insect bores into the timbers of cottages. Its mating-call is a soft clicking noise, not normally audible. But in the wee hours, when you’re sitting alone with the body, you hear it.

That’s why it’s called the Death Watch Beetle.

They still have the custom in Spain, but now it takes place in the “Tanatorio” – the death house.

If a Spanish friend or neighbour passes, it is only polite to show up at the tanatorio, say “pesame mucho”, and spend an hour chatting with the other mourners.

British funerals often occur a week or even a fortnight after the person dies. We feel that relatives should be given time to make travel arrangements.

Spain is loyal to its Arabic past – the funeral happens the very next day. There is no refrigeration. The body has to be disposed of as fast as possible. No-one sees the haste as disrespectful.

Mourning, on the other hand, is more elaborate in Spain. It’s not as severe as it was 50 years ago, but you still see elderly widows who wear black every day – and will do so for the rest of their lives.

In Britain, we might invite someone who is suffering a bereavement to take a sympathy drink in the pub. Such an invitation would cause offence here. Mourners don’t go out and have fun.

If you go to a funeral, brace yourself for some surprises. Almost everyone is buried in a niche in the wall (a ‘nicho’) and cemetery workers might well show up while you’re standing there.

They’ve got a bucket of wet plaster, and they want to seal the grave before the lunch break. To us, it seems jarring that these workers chat together – but why shouldn’t they? This is their office space!

Also disconcerting is the way mourners burst into applause as the coffin passes – but it’s just their custom.

Spanish Funeral

All joy had fled these pinched, wintry alleys.

The sun had slouched away

to die somewhere alone,

like a poisoned cat.

Across the steep valley,

chestnut trees stood stoic and erect,

terracotta warriors, undecked,

their green bled out.

Damp was the only regular

that now attended the village church.

Plaster was bulbing out, like gout

or arthritic knuckles,

and paintings of rustic saints

were wrinkling out of their frames,

unloved, unnoticed, flecked

with fungus, freckle-frowned.

The coffin yawed and lurched,

coming out into the drizzle.

No-one’s buried in the ground

in Spain. They slot you in a wall.

We mourners, with murrains and galls,

and racking coughs and limps,

were huddled, waiting.

We saw them hoist the pall

to offer it to its slot.

I was appalled. What I got

was a glimpse, to my distress,

of something claustrophobically small,

so dismal, comfortless –

the interior of her “plot”,

that niche that’s waiting for us all.

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