As the UK slowly heads towards winter, residents in Spain are continuing to enjoy the sunshine with temperatures rarely dropping below 20°C and an average of 300 days of sun! For October’s Spanish mortgage example, we have chosen some new, high-valued Spanish town houses valued at €395,000 that will give you the opportunity to enjoy the sun all year round.
El Chaparral, Málaga, Andalusia
Situated on the famous Mediterranean coastline of the Costa del Sol, this contemporary development of 3-4 bedroom townhouses are ideally situated within walking distance to some of Spain’s most beautiful Blue Flag beaches. Many local amenities are located close by, with the popular town of La Cala and Malaga airport only a short drive away.
Enjoy the contemporary architectural style and the latest-in-home technology that each property benefits from. Inside you’ll also find large interior spaces including living areas, dining areas and a fully fitted kitchen with breakfast bar. The spacious bedrooms benefit from fitted wardrobes, and the master suite features a walk-in wardrobe and beautiful en suite.
You’re in luck if you love a view, as each property boasts spectacular views overlooking either the golf course or the Mediterranean Sea. These can either be seen from the oversized triple aspect windows in the living rooms, or from the sun terrace. This exclusive resort-style complex of properties includes everything you’ll need to create a luxury lifestyle on the Costa del Sol, with a state of the art sports club offering fitness, wellness and social areas for you to enjoy.
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Is a Spanish mortgage right for you?
If you are looking for a little extra funding to help purchase a property in Spain, then a Spanish mortgage can be a great move that can offer you a number of benefits, including:
- Pay off your mortgage with no penalties – As soon as exchange rates improve, you’ll be able to pay off your mortgage with no penalties, due to the offsetting of the current low value of the £ sterling.
- Increased budget – a Spanish mortgage can help you increase your overall budget, which in turn could allow you to buy property in a different area of Spain, or somewhere slightly bigger.
- Speed up the process – Due to the extra funding gained from a Spanish mortgage, you might be able to decrease the time it takes to purchase your property.
- Rent to repay – By renting your property when you don’t need it, you could benefit from repaying your Spanish mortgage with the returns made.
If you want to learn more about 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 – €395,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €59,250
Therefore the total cost of purchase – €454,250
Funds needed to complete (including 35% deposit value & fees) – €197,500 @ an exchange rate of 1.11 = GBP 177,928
Mortgage value (LTV) 65% – €256,750
Cost per month over 25 years @ 2.00% interest rate – €1076 @ an exchange rate of 1.11 = GBP 970
In summary, you could buy this Spanish property using a 65% mortgage with a combined deposit and fee costs of €197,500 and monthly instalments of €1076 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 – €395,00
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €59,250
Therefore the total cost of purchase – €454,250
Funds needed to complete (including 45% deposit value & fees) – €237,000 @ an exchange rate of 1.11 = GBP 213,513
Mortgage value (LTV) 55% (Max lending for non-Spanish tax residents from the EU) – €217,250
Cost per month over 25 years @ 2.00% interest rate – €993 @ an exchange rate of 1.11 = GBP 895
In summary, you could buy this Spanish property using a 55% mortgage with a combined deposit and fee costs of €237,000 and monthly instalments of €993 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.
Attaining a Spanish mortgage on a property
If you’ve looked at this months mortgage examples and decided that a Spanish mortgage is the best path for you to take, the bilingual experts at Fluent Finance Abroad (FFA) can be trusted to get you the best exchange rates, by liaising with the top high-street banks in Spain. This can take away some of the stress, and allow you to enjoy the exciting process of buying a Spanish property!
Financing your Spanish property in the UK
Many individuals prefer to keep their finances close to home when purchasing a Spanish property. If this is the case for you, our official financial advisors in the UK will be more than happy to help you. From equity releases, remortgages and loans, 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.
Currency transfer
Once you’ve found your dream Spanish property, you’ll then need to work out how you’re going to transfer the funds to pay for it. This might seem like a daunting task but there’s no need to worry, as our friends at A Place in the Sun Currency. can help you make big savings on 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 >>
Take a look at our other Spanish mortgage examples here:
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