Who can believe it’s already September? As usual summer has flown by in a blur and whilst you’re probably organising for the kids to go back to school or yourself for work, you might still be dreaming of the warm summer days that have passed.

Discovering the benefits of a Spanish mortgage will give you the opportunity to live in your dream home and experience that warm weather you love all year round. For September’s Spanish mortgage example we have chosen a stunning Spanish villa valued at €272,000.

Guardamar del Segura, Alicante, Valencia

This modern 3 bedroom villa is located near to Guardamar del Segura, in Costa Blanca. It’s fabulous location is only a short drive to multiple sunny beaches, and is only a 30 minute drive from Alicante International airport. Local amenities and a wide selection of popular bars and restaurants are only 10 minutes away from the complex, and a parking space is included.

The property is distributed over two floors, with the ground floor featuring a spacious, bright living and dining room area that has high ceilings and an open plan kitchen. This gives you plenty of room for family fun, or to host a get-together. This then opens onto a spacious, low maintenance garden with its own private swimming pool! This stunning outdoor space creates the perfect environment for BBQs or parties. Also on the ground floor is a luxurious master bedroom with ensuite bathroom and separate dressing room, a real treat for any property.

The staircase from the living room leads you to the first floor where you will find another two spacious double bedrooms, one with an ensuite bathroom and access to a beautiful sun terrace. Pre-installed air conditioning runs throughout the house, ensuring you’ll be able to benefit from a perfect temperature, even through the hotter Spanish weather.

View more about this property >>

Why should you choose a Spanish mortgage?

If you’ve decided that a property in Spain is the right choice for you, a Spanish mortgage is an excellent way to raise the extra funds needed to afford the Spanish property of your dreams. It has been proven over the years, that a Spanish mortgage can help individuals with the big move to Spain by offering advantages like:

  • When searching for the perfect Spanish property, you’ll want to get the best you can for your money. A Spanish mortgage can help you increase your overall budget which in turn, could allow you to buy somewhere slightly bigger, or in a different area.
  • Renting your property when it’s not needed, for example in the winter months, could allow you to benefit from renting it out, and repaying your mortgage by the returns made.
  • Having a Spanish mortgage might be able to decrease the time it takes to purchase your property. This is due to the extra funding gained from having a mortgage.
  • Due to the offsetting of the current low value of the £ sterling, you’ll be able to pay off your mortgage with no penalties. This is as soon as exchange rates improve.

Let us put you in touch with one of our recommended mortgage advisors by contacting us here, or read more about the benefits of choosing a Spanish mortgage 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 occur when you buy a Spanish property, to give you a more realistic mortgage figure.

Property price – €272,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €40,800
Therefore the total cost of purchase – €312,800

Funds needed to complete (including 35% deposit value & fees) – €136,000 @ an exchange rate of 1.10 = GBP 123,636

Mortgage value (LTV) 65% – €176,800

Cost per month over 25 years @ 2.00% interest rate – €691.73 @ an exchange rate of 1.10 = GBP 628.84

In summary, you could buy this Spanish property using a 65% mortgage with a combined deposit and fee costs of €136,000 and monthly instalments of €691.73 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 – €272,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €40,800
Therefore the total cost of purchase – €312,800

Funds needed to complete (including 45% deposit value & fees) – €163,200 @ an exchange rate of 1.10 = GBP 148,363

Mortgage value (LTV) 55% (Max lending for non-Spanish tax residents from the EU) – €149,600

Cost per month over 25 years @ 2.00% interest rate – €691.73 @ an exchange rate of 1.10 = GBP 628.84

In summary, you could buy this Spanish property using a 55% mortgage with a combined deposit and fee costs of €163,200 and monthly instalments of €691.73 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.


Financing your Spanish property in the UK

How you plan to finance your Spanish property might be one of the biggest decisions you have to make. If you would prefer to keep your finances close to home, our official financial advisors in the UK can offer unbiased guidance and assistance. From remortgages, equity releases and loans, they can assist you in your property purchase to ensure that 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 decided on the property you want, an important factor to consider is how you plan to transfer the funds required to pay for it. We recommend you use a currency transfer specialist, like our friends at A Place in the Sun Currency. They can help you make big savings on exchange rates, so that the extra money saved can be put towards paying for the additional costs such as legal fees, taxes or new furniture.

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

Obtaining a Spanish mortgage on a property

If you have decided that a Spanish mortgage is the best choice for you, the bilingual experts at Fluent Finance Abroad (FFA) will be more than happy to help you learn about obtaining a Spanish mortgage. We assure they can be trusted to get you the best exchange rates, when they liaise with the top high-street banks in Spain.

Take a look at our other Spanish mortgage examples 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 >>
Property worth €149,500 – view here >>
Property worth €265,950 – view here >>

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