This month in our Spanish mortgage example series, we’ll be looking at a property valued at €125,000.
We often get questions about what finance is available to UK buyers and quite simply, there are many options. Our latest free brochure explains the most common finance assistance in Spain and the UK. You can request a copy of our finance brochure here >>.
Spanish mortgages for a Costa Blanca property
This month we will be highlighting these fantastic new apartments in Pilar de la Horadada, Alicante that have just been released! These ultra-modern homes are less than a 10 minute drive from sandy beaches, and are just a short walk from local amenities such as shops and restaurants. They’re also conveniently located close to Murcia and Alicante airports.
Just like the UK, property purchases come with additional fees, therefore we have accounted for this in our example, the fees are around 14%.
Property price – €125,000
Estimated closing costs – €17,500 (including all taxes & bank mortgage set up fees approx 14%)
Therefore the total cost of purchase – €142,500
Spanish mortgage option 1
30% deposit value – €55,000 @ an exchange rate of 1.12 = GBP 49,107
Mortgage value (LTV) 70% (Max lending for non-Spanish tax residents from the EU) – €87,500
Cost per month over 25 years @ 2.00% interest rate – €374 @ an exchange rate of 1.12 = GBP 333.92
In summary, you could buy this property using a 70% mortgage with a deposit of €55,000 and monthly installments of €374 over 25 years.
Spanish mortgage option 2
40% deposit value – €67,500 @ an exchange rate of 1.12 = GBP 60,268
Mortgage value (LTV) 60% (Avg lending for non-Spanish tax residents from the EU) – €75,000
Cost per month over 25 years @ 2.00% interest rate – €320 @ an exchange rate of 1.12 = GBP 285.70
In summary, you could buy this property with a 60% mortgage using a deposit of €75,000 and monthly installments of €320 over 25 years.
*Please check with an officially registered currency exchange company for up to date exchange rates, the figures shown are for guidance purposes only. Our partners at Global Currency can offer competitive rates.
Take a look at some other Spanish mortgage examples:
Benefits of a Spanish mortgage
We understand that Spanish mortgages may seem difficult and you may be hesitant to consider one, however using finance to purchase your property may be a strategic move. Such benefits include:
- Offsetting the low value of the £ Sterling – once the exchange rate improves, you can choose to pay off your mortgage at no fee.
- Seen the home of your dreams? Don’t miss the chance to put an offer in on the property and use finance to purchase sooner.
For more benefits, please visit our finance and Spanish mortgage page >>.
Have any Spanish mortgage questions?
Our dedicated Spanish mortgage brokers are available to give you advice, guidance and act on in your best interest. Fluent Finance Abroad (FFA) are a team of expert mortgage brokers, who are fluent in English and Spanish.