This month’s Spanish mortgage example is based on a delightful Spanish-style town-house in Orihuela-Costa, Alicante, Valencia. Situated in one of the prettiest urbanisations you’ll find, this property’s surroundings create a very pleasant area to reside or spend your holidays in.
Orihuela-Costa, Alicante, Valencia property – Spanish mortgage example
This stunning traditional style 2 bedroom townhouse comes fully furnished and includes spacious lounge and dining areas featuring a French fireplace. The incredible communal pools, sub-tropical gardens and water fountains create a perfect environment for relaxing in the sun.
This Spanish property benefits from a fantastic location only a 2-minute walk from supermarkets, bars and restaurants. The famous La Zenia and Cabo-Roig beaches are only a short drive away.
This townhouse has been kept in immaculate condition by the current owners and features a fully equipped kitchen, 2 double bedrooms with fitted wardrobes and tiled family bathroom. This property is finished off by the huge roof terrace which offers exceptional views of Orihuela-Costa.
Why choose a Spanish mortgage?
If you need additional funding for your Spanish Property, a Spanish mortgage may be a tactical move which can provide many benefits, including:
- Buying your property sooner due to the added finance
- Rental returns which could help repay your mortgage during the times when you’re property is not needed
- When exchange rates improve, you can benefit from paying off your mortgage with no penalties. This is due to the offsetting of the current low value of the £ sterling
- Enlarging your budget which could allow you to afford a larger home with fewer compromises
Want to read more about the benefits of choosing a Spanish mortgage or chat with one of our recommended advisors? Click here to contact us >>.
Spanish mortgage rate example, option 1
To give you a more realistic figure, we have allowed for additional fees like community fees, taxes and the legal fees that may occur when you buy a Spanish property.
Property price – €149,500
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €22,452
Therefore the total cost of purchase – €179,925
Funds needed to complete (including 35% deposit value & fees) – €74,750 at an exchange rate of 1.15 = GBP 65,000
Mortgage value (LTV) 65% – €97,175
Cost per month over 25 years at 2.00% interest rate – €415 at an exchange rate of 1.15 = GBP 361
In summary, you could buy this Spanish property using a 65% mortgage with combined deposit and fee costs of €74,750 and monthly installments of €415 over 25 years.
Spanish mortgage rate example, option 2
Property price – €149,500
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €22,425
Therefore the total cost of purchase – €171,925
Funds needed to complete (including 45% deposit value & fees) – €89,700 at an exchange rate of 1.15 = GBP 78,000
Mortgage value (LTV) 55% – €82,225
Cost per month over 25 years at 2.00% interest rate – €351 at an exchange rate of 1.15 = GBP 305
In summary, you could buy this Spanish property using a 55% mortgage with combined deposit and fee costs of €171,925 and monthly installments of €351 over 25 years.
*Please check with an officially registered currency exchange company, such as our partners at A Place in the Sun Currency, for up to date exchange rates. The figures shown are for guidance purposes only.
Financing your Spanish property in the UK
Our UK financial advisors are able to offer unbiased assistance or guidance, helping you keep your finances closer to home. From loans, remortgages and equity release, they can help you release funds from the UK to aid your property purchase.
Please contact us directly on 01202 971614 or download our latest brochure here for more information.
Acquiring a Spanish mortgage on a property
Our recommended advisors are always free to inform you on Spanish mortgages. The friendly, bilingual advisors at Fluent Finance Abroad (FFA), have contact with the best high street banks in Spain to get you the best rates.
Some buyers decide to use their current bank to transfer the funds needed to pay for their Spanish property, however, this is typically charged at higher rates than specialist currency brokers.
When buying overseas, it is important to think about the extras. This is why we suggest using a specialist like A Place in the Sun Currency, as savings on the exchange rates can be used to pay for the extra expenses like furniture packages and legal costs.