Ultra modern architecturally designed homes located near award winning sandy beaches have proved to be one of the most popular choices for Spanish properties. So, we’ve decided to base this month’s Spanish mortgage example on an exquisite newly built villa in Daya Vieja, Alicante, Valencia.

Daya Vieja, Alicante, Valencia property – Spanish mortgage example

This ‘eco-designed’, modern 3-bed villa incorporates ultra-modern architectural design features such as a private floodlit pool with featured waterfall. This can be overlooked from the bright open plan kitchen with breakfast bar- perfect for lazy sunny mornings.

This Spanish property also benefits from a fantastic location only 30 minutes from Alicante airport and around 10 minutes from Guardamar, a coastal city with fabulous sandy beaches, bars and restaurants and superb shopping centres.

This villa has been developed over two floors and features an extremely spacious living / dining room overlooking the partially tiled garden, 3 lovely double bedrooms with fitted wardrobes and en suite bathrooms. One of the best aspects of this villa is the beautiful private sun terrace overlooking the pool which is attached to the master bedroom.

View more about this property >>

Why choose a Spanish mortgage?

Spanish mortgages can be a smart, strategic move if you need a little extra funding for your dream Spanish property. They can offer a number of advantages, including:

  • Rental returns could help repay your mortgage fees by renting your property when it is not being used
  • Allowing you to purchase your property sooner
  • Allowing you to purchase a bigger home by increasing your budget
  • Once exchange rates improve, you are able to pay off your mortgage with no penalties due to offsetting the current low value of the £ sterling

Let us put you in touch with one of our recommended advisors by clicking here to contact us >>, or read more about the benefits of choosing a Spanish mortgage.


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 – €205,000

Estimated closing costs including all taxes & bank mortgage set up fees at approximately 14% – €28,700

Therefore the total cost of purchase – €233,700

Funds needed to complete (including 35% deposit value & fees) – €100,450 at an exchange rate of 1.15 = GBP 87,348

Mortgage value (LTV) 65% – €133,250

Cost per month over 25 years at 2.10% interest rate – €575.46 at an exchange rate of 1.15 = GBP 500.40

In summary, you could buy this Spanish property using a 65% mortgage with combined deposit and fee costs of €100,450 and monthly installments of €575.46 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 – €205,000

Estimated closing costs including all taxes & bank mortgage set up fees at approximately 14% – €28,700

Therefore the total cost of purchase – €233,700

Funds needed to complete (including 45% deposit value & fees) – €120,950 at an exchange rate of 1.15 = GBP 105,173

Mortgage value (LTV) 55% – €112,750

Cost per month over 25 years at 2.10% interest rate – €486.93 at an exchange rate of 1.15 = GBP 423.42

In summary, you could buy this Spanish property using a 55% mortgage with combined deposit and fee costs of €120,950 and monthly installments of €486.93 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

Our recommended advisors are always available to help you if you want to know more about obtaining a Spanish mortgage. The friendly, bilingual advisors at Fluent Finance Abroad (FFA), help you get the best rates by liaising with the top high street banks in Spain.

Currency transfer

When buying overseas it is important to have plans in place on how to transfer the funds required to pay for your property. We 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.

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

Financing your Spanish property in the UK

Our UK advisors can offer unbiased guidance and assistance for those of you who want to keep your finances close to home. From loans, remortgages and equity releases, they can help release funds from the UK to assist you in 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:

Keep Up To Date

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