The second in our Spanish mortgage example series! Here’s a working example of a fantastic property valued at €152,000!
Did you know over 40% of non-residents who buy a home in Spain require extra finance?
Spanish mortgage for a property
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We’ve tried to keep this example as useful as possible, therefore we’ve included the approximate additional costs that come with a property purchase such as fees and taxes; this is typically around 16%.
Property price – €152,000
Estimated closing costs – €24,320 (including all taxes & bank mortgage set up fees approx 16%)
Therefore the total cost of purchase – €176,320
Spanish Mortgage Option 1
30% deposit value – €69,920 @ an exchange rate of 1.12 = GBP 62,428
Mortgage value (LTV) 70% (Max lending for non Spanish tax residents from the EU) – €106,400
Cost per month over 25 years @ 2.00% interest rate – €455 @ an exchange rate of 1.12 = GBP 407
In summary, with a 70% mortgage, you could buy this property using a deposit of €69,920 and then monthly installments of €455 over 25 years.
Spanish Mortgage Option 2
40% deposit value – €85,120 @ an exchange rate of 1.12 = GBP 76,000
Mortgage value (LTV) 60% (Avg lending for non-Spanish tax residents from the EU) – €91,200
Cost per month over 25 years @ 2.00% interest rate – €390 @ an exchange rate of 1.12 = GBP 348
In summary, with a 60% mortgage, you could buy this property using a deposit of €85,120 and then monthly installments of €390 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.
Get in touch to learn more about Spanish mortgages for your property
We recommend you talk with a professional broker to discuss the feasibility of a Spanish mortgage for your purchase. Our recommended advisors, Fluent Finance Abroad (FFA) are a highly respected mortgage broker, with expert staff who are fluent in English and Spanish. They will always act in your best interest.
Contact FFA today! Call +34 952 85 36 47 or visit: www.fluentfinanceabroad.com
Finance your home in the UK
There are many ways to finance a holiday home in the UK such as remortgages, loans and/or equity release. For more information on raising finance in the UK, please get in touch!
Example of a property worth €232,000