With the UK well and truly into the winter months, and Christmas being just around the corner, we’ve based this month’s Spanish mortgage rates example on a two bedroom apartment that is perfect for enjoying the Spanish climate the whole year round – even during the winter.
Málaga property – Spanish mortgage example
This ultra modern 2 bed apartment is located in a gated community in the exclusive Los Flamingos area of Málaga. It is south-facing for all day sun, with fantastic views overlooking beautifully maintained golf courses.
The apartment benefits from a spacious private balcony and a communal pool, as well as featuring A/C for the really warm days, and underfloor heating for the rare cold spells.
Why should you consider a Spanish mortgage?
If you are looking for extra funding to purchase a property in Spain, then a Spanish mortgage can be a great strategic move that offers a number of benefits, including:
- Offsetting the low value of the £ sterling, so once the exchange rate improves you can pay off your mortgage with no penalties.
- Being able to afford and buy your property sooner.
- With excellent Spanish mortgage rates available, you may have the opportunity to increase your budget and purchase a home in Spain that’s bigger and/or better.
- If you are hoping to let your property, the rental returns can help pay towards the mortgage repayments.
Read more about the benefits of choosing a Spanish mortgage or talk to our recommended advisors.
Spanish mortgage rates example, option 1
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 – €349,995
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 14% – €48,999
Therefore the total cost of purchase – €398,994
Funds needed to complete (including 35% deposit value & fees) – €171,497 at an exchange rate of 1.12 = GBP 153,122
Mortgage value (LTV) 65% – €227,497
Cost per month over 25 years @ 2.10% interest rate – €971 at an exchange rate of 1.12 = GBP 866.96
In summary, you could buy this Spanish property using a 65% mortgage with combined deposit and fee costs of €171,497 and monthly installments of €971 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 – €349,995
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 14% – €48,999
Therefore the total cost of purchase – €398,994
Funds needed to complete (including 45% deposit value & fees) – €206,497 at an exchange rate of 1.12 = GBP 184,372
Mortgage value (LTV) 55% – €192,497
Cost per month over 25 years @ 2.10% interest rate – €822 @ an exchange rate of 1.12 = GBP 733.92
In summary, you could buy this Spanish property using a 55% mortgage with combined deposit and fee costs of €206,497 and monthly installments of €822 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.
Obtaining a Spanish mortgage on a property
If you want to know more about Spanish mortgages, our recommended advisors are available to help you. The bilingual, friendly advisors at Fluent finance Abroad (FFA), liaise with the top high street banks in Spain to get you the best rates.
Financing your Spanish property in the UK
If you want to keep your finances closer to home, our UK advisors can offer unbiased guidance and assistance. From remortgages, equity release and loans, they can help release funds from the UK to assist towards your property purchase.
For more information, please download our latest brochure here or contact us directly on 01202 971614.
Currency transfer
Whether you decide on a Spanish mortgage or opt for UK financing, before you make your move to Spain you will need to transfer money into euros. Banks can charge around 4% (£4,000 on a £100,000 transfer), so to save money we can put you in touch with A Place in the Sun Currency who only charge around 1%. To register now, call 0800 622 6522 and quote ‘Spanish Legal Homes’.