August, in the UK brings some of the warmest weather we experience throughout the year. However, if you don’t want the sun to stop, the perfect solution is to invest in your dream Spanish property and enjoy the warm sun all year round! For August’s Spanish mortgage example we have chosen a beautiful Spanish apartment valued at €175,000.

Mijas-Costa, Málaga, Andalusia – Spanish mortgage example

This newly refurbished, 2 bedroom apartment is excellently located in a classic complex, within easy walking distance to a large selection of restaurants, bars and local amenities. This apartment is also only a short walk away from the beach and just a 20-minute drive from Malaga International Airport.

This property features a large bright open plan kitchen, fully fitted, including a breakfast bar, which opens onto a spacious living room and dining area, perfect for lots of family fun in the holidays. Towards the back of the apartment is a private sun terrace, overlooking the communal pool and gardens. This feature lets in fantastic natural light from the large windows, making the whole apartment feel bright and airy. The 2 double bedrooms are both ultra-modern and feature fitted wardrobes. The master bedroom even features a stunning ensuite with double sinks in addition to the separate family bathroom.

One of the best aspects of this property is its immaculate condition. This property is completely renovated throughout to the highest standards and features modern designs and layouts.
View more about this property >>

Why choose a Spanish mortgage?

Spanish mortgages can be a tactical way to afford your dream Spanish property, if you require the extra funding. Over the years, they have proven to help many individuals with their move to Spain by offering benefits such as:

  • When exchange rates improve, you will be able to benefit from paying off your mortgage with no penalties due to offsetting the current low value of the £ sterling.
  • A Spanish mortgage can increase your overall budget, allowing you to purchase your dream Spanish property, or even somewhere slightly bigger.
  • If you are thinking of renting your property when it is not needed, your mortgage payments can be repaid by the returns made.
  • You might be able to purchase your Spanish property quicker from the extra funding gained from having a Spanish mortgage.

Read more about the benefits of choosing a Spanish mortgage or let us put you in touch with one of our recommended advisors by clicking here to contact us >>


Spanish mortgage rate example, option 1

In our example, we have allowed for the additional fees such as community fees, taxes and the legal fees that occur when you buy a Spanish property, to give you a more realistic figure.

Property price – €175,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €26,250
Therefore the total cost of purchase – €201,250

Funds needed to complete (including 35% deposit value & fees) –  €87,500 @ an exchange rate of 1.09 = GBP 80,275

Mortgage value (LTV) 65% –  €113,750

Cost per month over 25 years at 2.00% interest rate –  €482.13 @ an exchange rate of 1.09 = GBP 442.32

In summary, you could buy this Spanish property using a 65% mortgage with a combined deposit and fee costs of €87,500 and monthly instalments of €482.13 over 25 years.


Spanish mortgage example, option 2

In our example, we have allowed for the additional fees such as taxes, community fees and the legal fees that occur when you buy a property.

Property price – €175,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €26,250
Therefore the total cost of purchase – €201,250

Funds needed to complete (including 45% deposit value & fees) –  €105,000 @ an exchange rate of 1.09 = GBP 96,330

Mortgage value (LTV) 55% (Max lending for non-Spanish tax residents from the EU) –  €96,250

Cost per month over 25 years @ 2.00% interest rate –  €407.96 @ an exchange rate of 1.09 = GBP 374.27

In summary, you could buy this Spanish property using a 55% mortgage with a combined deposit and fee costs of €105,000 and monthly instalments of €407.96 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.


Currency transfer

If you’re thinking of purchasing a property overseas, an important factor to consider is how you plan to transfer the funds required to pay for it. The best option is to use a currency transfer specialist, like our friends at A Place in the Sun Currency. They will help you make huge savings on the exchange rates, so that the extra money can be put towards paying for the additional costs such as furniture packages and legal fees.

If you would like more information on currency transfer, click here to contact us >>

Obtaining a Spanish mortgage on a property

Learn more about how to obtain a Spanish mortgage from our bilingual mortgage advisors at Fluent Finance Abroad (FFA). Their experts can be trusted to get you the best exchange rates, by liaising with the top high-street banks in Spain.

Financing your Spanish property in the UK

If you would prefer to keep your finances close to home, our official financial advisors in the UK can offer unbiased assistance and guidance. From equity releases, remortgages, to loans, they can assist you in your property purchase and help you release funds from the UK.

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

Take a look at our other Spanish mortgage examples here:

Property worth €259,000 – view here >>
Property worth €132,000 – view here >>
Property worth €205,500 – view here >>
Property worth €149,500 – view here >>
Property worth €265,950 – view here >>
Property worth €105,800 – view here >>

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