March’s Spanish mortgage example for a Spanish property costing €265,950

With architects and developers investing more than ever in building brand new Spanish property complexes, we’ve based this month’s Spanish mortgage example on a newly built 2-bed villa in Sucina, Murcia.

Sucina, Murcia property – Spanish mortgage example

This brand new, ultra modern 3-bed villa is packed with state of the art design features such as a huge bowed window from the garden to the lounge, a pool with a feature island, jacuzzi bench and waterfall cascade, and an outside kitchen equipped for BBQs or cooking paella!

This Spanish property also benefits from a fantastic location only 30 minutes from Murcia airport, and is just a short walk from restaurants, shops, bars and golf courses.

The villa features a fully equipped modern kitchen, a stunning first-floor master bedroom with en suite and fitted wardrobes, two more spacious bedrooms with fitted wardrobes, and private parking too.

View more about this Spanish property >>

Why choose a Spanish mortgage?

Spanish mortgages can be a beneficial strategic move if you need extra funding for your Spanish property. They can offer a number of benefits, including:

  • Offsetting the current low value of the £ sterling, so once exchange rates improve you are able to pay off your mortgage with no penalties
  • Often allowing you to buy your property sooner
  • Increasing your overall budget allowing you to buy a home that’s bigger or with fewer compromises
  • By letting out your Spanish property when it’s not needed, the rental returns could help repay your mortgage fees

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

 


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 occur when you buy a property, giving you a more realistic figure.

Property price – €265,950
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €39,892
Therefore the total cost of purchase – €305,842

Funds needed to complete (including 35% deposit value & fees) – €132,975 at an exchange rate of 1.15 = GBP 115,630

Mortgage value (LTV) 65% – €172,867

Cost per month over 25 years at 2.00% interest rate – €738 at an exchange rate of 1.15 = GBP 642

In summary, you could buy this Spanish property using a 65% mortgage with combined deposit and fee costs of €132,975 and monthly installments of €738 over 25 years.

 


Spanish mortgage rate example, option 2

Property price – €265,950
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €39,892
Therefore the total cost of purchase – €305,842

Funds needed to complete (including 45% deposit value & fees) – €159,570 at an exchange rate of 1.15 = GBP 138,756

Mortgage value (LTV) 55% – €146,272

Cost per month over 25 years at 2.00% interest rate – €625 at an exchange rate of 1.15 = GBP 544

In summary, you could buy this Spanish property using a 55% mortgage with combined deposit and fee costs of €159,570 and monthly installments of €625 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.

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 bank but this will typically be charged at higher rates than a specialist currency broker.

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

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.

Take a look at our other Spanish mortgage examples here: