August’s Spanish mortgage example on a Spanish property worth €171,000

For August’s summer Spanish mortgage example we have chosen a beautiful Spanish property valued at €171,000. With property prices rising and investment potentials high, now is a great time to buy! Learn more about buying in Spain here.

Spanish mortgage on a Costa del Sol property

This brand new development in Alcaidesa is the perfect apartment for a holiday home or for all year round living. You will have the choice of 2 – 3 bedroom apartments on the ground floor with a private walled garden or on the first floor with a private terrace and roof solarium. The properties are just 500 metres away from sandy beaches and championship golf courses and the complex benefits from two communal swimming pools, landscaped gardens and unbelievable views.

If this Costa del Sol property takes your interest, take a look at how obtaining a Spanish mortgage may be a great choice for you!

Spanish mortgage example

Similar to the UK, a property purchase incurs some additional fees such as taxes, community fees and legal fees. As such, we have allocated these in our example, at around 14%.

Property price – €171,000

Estimated closing costs – €23,940 (including all taxes & bank mortgage set up fees approx 14%)

Therefore the total cost of purchase – €194,940

Spanish mortgage option 1

30% deposit value – €75,240 @ an exchange rate of 1.12 = GBP 67,178

Mortgage value (LTV) 70% (Max lending for non-Spanish tax residents from the EU) – €119,700

Cost per month over 25 years @ 2.00% interest rate – €511 @ an exchange rate of 1.12 = GBP 456.25

In summary, you could buy this Spanish property using a 70% mortgage with a deposit of €75,240 and monthly installments of €511 over 25 years.

Spanish mortgage option 2

40% deposit value – €92,340 @ an exchange rate of 1.12 = GBP 82,446

Mortgage value (LTV) 60% (Avg lending for non-Spanish tax residents from the EU) – €102,600

Cost per month over 25 years @ 2.00% interest rate – €438 @ an exchange rate of 1.12 = GBP 391

In summary, you could buy this Spanish property with a 60% mortgage using a deposit of €92,340 and monthly installments of €438 over 25 years.

*Please check with an officially registered currency exchange company, such as our partners at Global Currency, for up to date exchange rates, the figures shown are for guidance purposes only.

Still not sure? A Spanish mortgage also offers the following benefits:

  • You can offset the current low value of the £ sterling, so once the exchange rate improves you can look to pay off your mortgage with no large penalties.
  • Enables you to afford your property quicker so you can benefit from your property sooner.
  • It could be an opportunity to increase your budget and purchase a Spanish home that’s in a better location, has more benefits or is simply bigger!
  • The potential rental returns from letting your property can help pay towards the mortgage repayments, so you won’t need to worry about the payments.

Obtaining a Spanish mortgage can be a lengthy but rewarding process that doesn’t need to be stressful.

How can you obtain a Spanish mortgage on a property?

If you’re interested in applying for a Spanish mortgage then talk to our dedicated mortgage brokers, Fluent Finance Abroad (FFA). They can offer you unbiased advice and guidance, plus the best mortgage rates from the best high street banks in Spain.

For more information, please download our latest brochure here or contact us directly on 01202 971614.

Take a look at our other Spanish mortgage examples here: