BANCO Halifax Hispania (BHH), the Spanish arm of Halifax plc, has reduced the interest rate charged on its Spanish mortgages by 0.2 per cent.

Banco Halifax offer euro mortgages secured against the Spanish property. Loans of up to 60 per cent of the value of the property are offered at 3.252 per cent while loans to a maximum of 70 per cent are available at 3.264 per cent.

Commenting on the reduction in interest rates, Ian Smith, head of European operations at Halifax, said: "This is excellent news for those customers thinking of buying a holiday home in Spain and who have a preference of raising the funds in euros. The demand from UK customers for property in Spain, particularly in the popular ex-patriate areas in the Costa Blanca, Costa Calida and Costa del Sol continues to be high."

For more information, contact the customer helpline on 01422 333868 or visit the website www.halifax.es