With Christmas on our doorstep, and the temperatures dipping into the minus degrees, a Spanish property could be the perfect, sunny escape you’ve been searching for. With temperatures rarely reaching below 20°C you’ll be able to enjoy your property all year round.

This month’s Spanish mortgage example is based on a development of 1, 2 and 3 bedroom apartments overlooking Costa Blanca beaches starting from just €89,000 .

Orihuela-Costa, Alicante, Valencia

These stunning apartments are located in Campoamor, which is widely regarded as one of the most upmarket coastal locations in Costa Blanca. With it’s vast sandy beaches, traditional Spanish restaurants, popular bars and the famous Horseshoe Marina all within walking distance, what more could you want?

Despite being an excellent location for beaches and fine dining, it’s also within close proximity to all services such as shops, supermarkets, and some of the best international golf courses. They’re also well connected by motorway with both airports, Murcia and Alicante, just a short 30 minute drive away.

No matter how many bedrooms you choose, all the apartments are distributed between a large living dining room, featuring sea-view windows, an open plan kitchen with breakfast bar, double bedrooms, all with fitted wardrobes and two bathrooms, one of them en-suite. Many of the properties also feature some extras such as a full white goods package included with the kitchen which features a decorative steel hood, ceramic hob, oven, microwave and integrated fridge/freezer.

The residential complex consists of large garden areas with tennis court, community pool and a playground for children.

View more about this property >>

Is a Spanish mortgage right for you?

If you’re thinking about investing in a Spanish property, a Spanish mortgage could be an excellent option for you as it offers the following benefits;

  • Speed up the process – With the extra funding gained from a Spanish mortgage, you could benefit from a quicker property purchase experience.
  • Increased budget – To be able to afford your dream property in Spain, you may need a little extra funding. If that is the case, you’ll be able to gain this from your Spanish mortgage.
  • Rent to repay – Rentals can be an excellent way to earn back the returns to pay your mortgage payments when you’re not living in the property.
  • Pay off your mortgage with no penalties – Due to the offsetting of the current low value of the £ sterling, as soon as exchange rates improve, you’ll be able to pay off your mortgage with no penalties.

If you want to learn more about the benefits of having a Spanish mortgage, let us put you in touch with one of our recommended mortgage advisors. Contact us here >>


Spanish mortgage rate example, option 1

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

Property price – €89,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €13,350
Therefore the total cost of purchase – €102,350

Funds needed to complete (including 35% deposit value & fees) – €44,499 @ an exchange rate of 1.18 = GBP 37,838
Mortgage value (LTV) 65% – €57,850
Cost per month over 25 years @ 1.90% interest rate – €242.39 @ an exchange rate of 1.18 = GBP 205.41

In summary, you could buy this Spanish property using a 65% mortgage with a combined deposit and fee costs of €44,499 and monthly instalments of €242.39 over 25 years.


Spanish mortgage rate example, option 2

In our second 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 – €89,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €13,350
Therefore the total cost of purchase – €102,350

Funds needed to complete (including 35% deposit value & fees) – €53,400 @ an exchange rate of 1.15 = GBP 45,381
Mortgage value (LTV) 65% – €48,950
Cost per month over 25 years @ 1.90% interest rate – €203.10 @ an exchange rate of 1.11 = GBP 173.81

In summary, you could buy this Spanish property using a 55% mortgage with a combined deposit and fee costs of €53,400 and monthly instalments of €203.10 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’ve read the above and think that a Spanish mortgage will be the best option for you, we can help you move this process forward. The bilingual experts at Fluent Finance Abroad (FFA) will take some of your stress away by liaising with the top high-street banks in Spain to get you the best exchange rates.

Currency transfer

After you’ve found the perfect property on your Spanish property viewing trip, you’ll then need to organise how you’re going to transfer the funds to cover it. Although this can seem like quite a daunting and difficult task, there’s no need to worry, as our friends at A Place in the Sun Currency can help you get the most out of your money by making big savings on the exchange rates. This means that any extra money saved can be put towards paying for additional costs such as taxes, new furniture or the legal fees associated with buying a new property.

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

Financing your Spanish property in the UK

It’s very common to see individuals who prefer to keep their finances close to home when investing in property in Spain. If that’s the case for you, our recommended UK-qualified financial advisors will be more than happy to help you achieve this. From remortgages, loans and equity releases, they can assist you in your property purchase and ensure the process runs smoothly from start to end.

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:

Property worth €149,000 – view here >>
Property worth €395,000 – view here >>
Property worth €272,000 – view here >>
Property worth €175,000 – view here >>
Property worth €259,000 – view here >>
Property worth €132,000 – view here >>

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