Whilst the UK is putting the heating on and wrapping up in jumpers, those lucky enough to own a spanish property will continue to enjoy the warm weather throughout the winter, with temperatures rarely dropping below 20°C!

This month’s Spanish mortgage example is based on a development of beautiful apartments that are only a short drive from the coastal city of Torrevieja.

Vistabella, Alicante, Valencia

These 2 bedroom, modern apartments are situated on the East coast of Spain, in a spectacular location only 1 km away from a popular golf course (an excellent location for golf lovers), 40 minutes from Alicante airport and a short 15 minute drive away from Torrevieja, a bustling city with fabulous beaches, huge shopping centers, bars and restaurants.

Each apartment benefits from a large, open-plan living / dining room with direct access to a wonderful sun terrace and a fully furnished, open plan kitchen with breakfast bar – the perfect place to entertain family and friends during the holidays. You’ll also be treated to two double bedrooms, both with large fitted wardrobes and wide windows that showcase the beautiful Spanish sunshine! These apartments also feature two family bathrooms, one of them with an en-suite in the master bedroom.

You’ll have the choice of a property on the ground floor which includes a large front terrace, or a penthouse apartment which features a large solarium, overlooking the gardens. The residential complex in which they are located has huge gardens and two large communal pools, one for adults and the other for children.

View more about this property >>

Is a Spanish mortgage right for you?

A Spanish mortgage could be a smart decision if you’re thinking about investing in a property in Spain. They offer a number of benefits including;

  • Increased budget – If you’ve found your dream Spanish property, but it’s a little out of budget, a Spanish mortgage can give you the extra funding you require to afford it.
  • Pay off your mortgage with no penalties – Due to the offsetting of the current low value of the £ sterling, as soon as exchange rates improve, you’ll be able to pay off your mortgage with no penalties.
  • Rent to repay – If you’re worrying about repaying your mortgage payments, you could consider renting your property out when you don’t need it and pay the mortgage with the returns made.
  • Speed up the process – You might be able to decrease the time it takes to purchase a property in Spain with the extra funding gained from a Spanish mortgage.

If you’re interested in the benefits of having a Spanish mortgage, let us put you in touch with one of our recommended mortgage advisors. Contact us here >>


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 you will incur when you buy a Spanish property, to give you a more realistic mortgage figure.

Property price – €149,900
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €22,485
Therefore the total cost of purchase – €172,385

Funds needed to complete (including 35% deposit value & fees) – €74,950 @ an exchange rate of 1.15 = GBP 63,173
Mortgage value (LTV) 65% – €97,435
Cost per month over 25 years @ 1.90% interest rate – €408.26 @ an exchange rate of 1.15 = GBP 355.00

In summary, you could buy this Spanish property using a 65% mortgage with a combined deposit and fee costs of €74,950 and monthly instalments of €408.26 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.

Property price – €149,900
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €22,485
Therefore the total cost of purchase – €172,385

Funds needed to complete (including 35% deposit value & fees) – €89,940 @ an exchange rate of 1.15 = GBP 78,208
Mortgage value (LTV) 65% – €82,445
Cost per month over 25 years @ 1.90% interest rate – €345.45 @ an exchange rate of 1.11 = GBP 300.39

In summary, you could buy this Spanish property using a 55% mortgage with a combined deposit and fee costs of €89,940 and monthly instalments of €345.45 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.

Currency transfer

After you’ve found your dream property in Spain, the next step is to work out how you’re going to transfer the funds to cover it. This can seem quite daunting but there’s no need to worry, as our friends at A Place in the Sun Currency can help you make big savings on the exchange rates. This means that any extra money saved can be put towards paying for additional costs such as legal fees, taxes or new furniture.

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

Obtaining a Spanish mortgage on a property

If you think that a Spanish mortgage fits your requirements and you’re interested to move forward, the bilingual experts at Fluent Finance Abroad (FFA) will help you on your journey. They will take some stress away by liaising with the top high-street banks in Spain to get you the best exchange rates.

Financing your Spanish property in the UK

It’s common that individuals may prefer to keep their finances close to home when investing in property in Spain. If that’s the case, our official financial advisors in the UK will be more than happy to help you achieve this. From loans, remortgages and equity releases, they can assist you in your property purchase and ensure the process runs smoothly.

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:

Property worth €395,000 – view here >>
Property worth €272,000 – view here >>
Property worth €175,000 – view here >>
Property worth €259,000 – view here >>
Property worth €132,000 – view here >>
Property worth €205,500 – view here >>

 

Keep Up To Date

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