Summer has finally arrived in the UK, however, the unreliable forecast means it could only be a matter of time before temperatures fall again. The same can’t be said for the location of the property in this month’s Spanish mortgage example, as we’ve based it on a property in Murcia. This region has an average temperature of 26°C all year round, and the property is valued at only €259,000!

Torre-Pacheco, Murcia – Spanish mortgage example

This classic, 3 bedroom villa is spread over two floors and features a spacious low maintenance garden with a shaded terrace, private swimming pool and even its own jacuzzi! This is a rare benefit to Spanish properties but this stunning outside space creates the perfect environment for summer parties and BBQs.

The property also features a large open plan lounge and dining area, a fully equipped kitchen and storage/laundry room with exit to the beautiful garden. All three bedrooms are double and include fitted wardrobes. One is located on the ground floor with adjoined shower cabin, then stairs will lead you to the first floor where you will find another two double bedrooms, as well as two more bathrooms, and access to a large terrace with stunning views of the surrounding area.

One of the best aspects of this property is its immaculate condition. The property is being sold completely furnished with lighting, air-conditioning and central heating throughout, making it the perfect property to stay in all year round. What more could you want?

View more about this property >>

Why choose a Spanish mortgage?

Spanish mortgages can be a smart move if you need a little extra funding to afford your dream Spanish property. They have proven to help individuals make the move to Spain by offering benefits such as:

  • The extra funding gained from having a Spanish mortgage means you might be able to purchase your Spanish property sooner
  • If you’ve got your heart set on a Spanish property that is slightly more than you can afford, a mortgage can increase your budget, allowing you to purchase your desired property
  • Being able to pay off your mortgage with no penalties due to offsetting the current low value of the £ sterling. However, this will only be possible when exchange rates improve
  • Mortgage payments can be repaid by the returns you could make from renting your property out when you do not need it.

Read more about the benefits of choosing a Spanish mortgage or let us put you in touch with one of our recommended advisers 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 – €259,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €38,850
Therefore the total cost of purchase – €297,850

Funds needed to complete (including 35% deposit value & fees) – €129,500 @ an exchange rate of 1.11 = GBP 115,052

Mortgage value (LTV) 65% – €168,350

Cost per month over 25 years at 2.00% interest rate – €713 @ an exchange rate of 1.11 = GBP 637

In summary, you could buy this Spanish property using a 65% mortgage with a combined deposit and fee costs of €129,500 and monthly installments of €713 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 – €259,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €38,850
Therefore the total cost of purchase – €297,850

Funds needed to complete (including 35% deposit value & fees) – €155,400 @ an exchange rate of 1.11 = GBP 139,222

Mortgage value (LTV) 65% – €142,450

Cost per month over 25 years at 2.00% interest rate – €659 @ an exchange rate of 1.11 = GBP 590

In summary, you could buy this Spanish property using a 55% mortgage with a combined deposit and fee costs of €155,400 and monthly installments of €659 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

Learn more about how to obtain a Spanish mortgage from our expert, bilingual mortgage advisors at Fluent Finance Abroad (FFA). You can trust them to get you the best exchange rates by conversing with the best high street banks in Spain.

Currency transfer

When deciding to buy a property overseas, one of the most important factors to consider would be how you plan to transfer the funds required to pay for it. By using a currency transfer specialist, like our friends at A Place in the Sun Currency, you could make huge savings on the exchange rates, which could be put towards paying for the additional costs such as legal fees and furniture packages.

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

Financing your Spanish property in the UK

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

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 €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 >>
Property worth €349,995 – view here >>

Keep Up To Date

Subscribe to our newsletter and be the first to know the latest deals and properties every month.