March has finally arrived and with it has bought lighter mornings and evenings. We have based this month’s mortgage example on a delightful property located in the sunny seaside resort of Pilar de la Horadada, where you can enjoy the Mediterranean lifestyle as well as the natural benefits the region has to offer.

Read on for the advantages of opting for a Spanish mortgage, as well as real-life examples of the costings which show you just how affordable owning a Spanish property can be.

Pilar de la Horadada, Alicante, Valencia

These stunning, south facing new build villas give you every chance to maximise the Spanish sunshine. Each plot features its own private swimming pool, with privacy ensured by walled gardens.The excellent location is only a short walk from popular beaches, restaurants and amenities.

The inside is just as impressive as the outside as each villa features a large open plan living, kitchen and dining area that has been fitted with high quality modern units, and a breakfast bar which separates the area from the terrace at the rear. The first floor features two additional bedrooms, the master bedroom, as well as the en-suite shower room and spacious family bathroom. Make the most of the Spanish sun from the sliding doors in the master suite which open on to a balcony overlooking the pool terrace.

Internal stairs lead up to the stunning rooftop solarium with amazing sea views. This area is fully equipped with a shower unit, small worktop and sink with plumbing and electrics for washing machines or a fridge, making it the perfect place to entertain friends and family all year round.

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 March’s Spanish mortgage example on a Spanish property worth €410,000

Is a Spanish mortgage right for you?

Once you’ve decided you’re ready to purchase a property in Spain, you’ll then have to figure out how you will finance it. It can be a tough decision to decide between a UK or a Spanish mortgage, which makes it even more important to consider the following benefits;

  • Quicker process – A Spanish mortgage could be a quicker way of raising the finance needed to buy your property in Spain.
  • The possibility of renting – Renting your property when you’re not using it could be a smart way to pay back your Spanish mortgage repayments.
  • Pay off your mortgage with no penalties – Offsetting the low value of the £ sterling means that when exchange rates improve, you can pay off your mortgage with no penalties.
  • Increased budget – With the superb Spanish mortgage rates available at the moment, you may have the opportunity to increase your budget to buy a bigger property, or one in a different location.

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, or phone 01202 971614.


Spanish mortgage rate example, option 1

In our first 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 – €410,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €61,500
Total cost of purchase – €471,500

Funds needed to complete (including 35% deposit value & fees) –  €205,000 at an exchange rate of 1.15 = GBP 178,260

Mortgage value (LTV) 65% – €266,500

Cost per month, capital repayment over 25 years at 2% at the top end interest rate – €1,129 at an exchange rate of 1.15 = GBP 981

In summary, you could buy this Spanish property using a 65% mortgage with a combined deposit and fee costs of €205,000 and monthly instalments of €1,129 over 25 years.


Spanish mortgage 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, however, we have added an extra 10% deposit value.

Property price – €410,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €61,500
Total cost of purchase – €471,500

Funds needed to complete (including 45% deposit value & fees) –  €246,000 at an exchange rate of 1.15 = GBP 1213,913

Mortgage value (LTV) 55% –  €225,500

Cost per month, capital repayment over 25 years at 2% at the top end interest rate – €955 at an exchange rate of 1.15 = GBP 830

In summary, you could buy this Spanish property using a 55% mortgage with a combined deposit and fee costs of €246,000 and monthly instalments of €955 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. Also, please note that these figures are for illustration purposes only, if you require a specific mortgage quote then please contact Fluent Finance Abroad.


Obtaining a Spanish mortgage on a property

After looking at our examples, and deciding that a Spanish mortgage is the best option for you, let us help you move the process forward. The bilingual experts at Fluent Finance Abroad (FFA) will make the process simple and stress-free by providing you with further financial advice and finding you the best exchange rates.

Currency transfer

When buying overseas it is important to have plans in place on how to transfer funds to pay for the property. Some buyers use their current UK bank, however, this typically charges at higher rates than a specialist currency broker.

We would recommend using a specialist such as A Place in the Sun Currency, as the savings you can make on exchange rate can be used to pay additional costs such as legal fees and furniture packages.

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

Financing your Spanish property in the UK

If you’re keen to keep your finances closer to home, our unbiased UK advisors will offer you guidance and assistance. Anything from equity releases, loans and remortgages, they can help you release funds from the UK to assist in your property purchase in Spain.

For more information, please contact us directly on 01202 971614 or register your interest here >>

Take a look at our other Spanish mortgage examples here:

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