Whilst the UK is donning jumpers and putting the heating on, those lucky enough to have property in Spain will continue to enjoy sunshine and warmth throughout the winter, with temperatures rarely dropping below 20°C! This month’s Spanish mortgage example is based on a property just a short drive from the beach that has its own pool, making it a perfect example of a Spanish home that offers a place to enjoy the sun all year round.
Alicante property – Spanish mortgage example
This ultra modern 3 bedroom villa is located in an ideal area close to Alicante airport, renowned golf courses and the beautiful beaches of Costa Blanca.
This fantastic newly built property boasts 3 light and spacious bedrooms – each with their own fitted wardrobes, and an ensuite off the master bedroom too. The villa is surrounded by its own large, walled plot that includes plenty of space for parking, landscaped gardens and a sundrenched pool to cool off in.
Why should you consider a Spanish mortgage?
If you are looking for extra funding to purchase a property in Spain, then a Spanish mortgage can be a great strategic move that offers a number of benefits, including:
- Offsetting the low value of the £ sterling, so once the exchange rate improves you can pay off your mortgage with no penalties.
- Being able to afford and buy your property sooner.
- Opportunity to increase your budget and purchase a home in Spain that’s bigger and/or better.
- If you are hoping to let your property, the rental returns can help pay towards the mortgage repayments.
Read more about the benefits of choosing a Spanish mortgage or talk to our recommended advisors.
Spanish mortgage 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.
Property price – €237,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 14% – €33,180
Therefore the total cost of purchase – €270,180
Funds needed to complete (including 35% deposit value & fees) – €116,130 at an exchange rate of 1.13 = GBP 102,770
Mortgage value (LTV) 65% (Max lending for non-Spanish tax residents from the EU) – €154,050
Cost per month over 25 years @ 2.10% interest rate – €717 at an exchange rate of 1.13 = GBP 635
In summary, you could buy this Spanish property using a 65% mortgage with combined deposit and fee costs of €116,130 and monthly installments of €717 over 25 years.
*Please check with an officially registered currency exchange company, such as our partners at Global Currency, for up to date exchange rates, the figures shown are for guidance purposes only.
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 – €237,000
Estimated closing costs including all taxes & bank mortgage set up fees approx 14% – €33,180
Therefore the total cost of purchase – €270,180
Funds needed to complete (including 45% deposit value & fees) – €139,830 at an exchange rate of 1.13 = GBP 123,743
Mortgage value (LTV) 55% (Max lending for non-Spanish tax residents from the EU) – €130,350
Cost per month over 25 years @ 2.10% interest rate – €563 at an exchange rate of 1.13 = GBP 499
In summary, you could buy this Spanish property using a 55% mortgage with combined deposit and fee costs of €130,350 and monthly installments of €499 over 25 years.
*Please check with an officially registered currency exchange company, such as our partners at Global 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.
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: