For this summer’s Spanish mortgage example we have chosen a beautiful Spanish property valued at €132,000. Although it’s officially summer in the UK, the sun we actually see can, unfortunately, be very limited. The same can’t be said for the location of this traditional Spanish townhouse in Valencia, which experiences around 2,660 hours of sunshine per year!
San Miguel de Salinas, Alicante, Valencia – Spanish mortgage example
This classic, 2 bedroom townhouse is spread over two floors and features a large, tiled, sunny garden with a porch that allows the entrance to the interior. You’ll be able to wake up to magnificent views of the countryside from the master bedroom’s private solarium – perfect for lazy sunny mornings.
One of the best aspects of this Spanish property is the fantastic location, only 40 minutes from the airport and around 20 minutes from Torrevieja town centre, where you can find a variety of shops, services, bars and restaurants. And of course, the best beaches of Costa Blanca, in Guardamar, are only 15 minutes away!
Both bedrooms are double and feature beautiful fitted wardrobes. One is located on the first floor, the other on the ground, giving you plenty of space. This townhouse has a bright living-dining room which has been immaculately kept by the previous owners, and includes a fully equipped separate kitchen.
Why choose a Spanish mortgage?
Spanish mortgages can be an intelligent, calculated move if you need that extra funding to afford your Spanish property. They can offer you a number of benefits, including:
- When exchange rates improve, you’ll be able to pay off your mortgage with no penalties, due to offsetting the current low value of the £ sterling
- The mortgage can increase your budget, allowing you to purchase a bigger home in a desirable location
- Renting your property out when it’s not used could help repay your mortgage fees from the returns you make
- Spanish mortgages can help you purchase your property sooner as you’ll have access to extra funding
Read more about the benefits of choosing a Spanish mortgage or let us put you in touch with one of our recommended advisors by clicking here to contact us >>
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 property, giving you a more realistic figure.
Property price – €132,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €19,800
Therefore the total cost of purchase – €151,800
Funds needed to complete (including 35% deposit value & fees) – €66,000 @ an exchange rate of 1.11 = GBP 59,459
Mortgage value (LTV) 65% – €85,800
Cost per month over 25 years at 2.00% interest rate – €367 @ an exchange rate of 1.11 = GBP 331
In summary, you could buy this Spanish property using a 65% mortgage with combined deposit and fee costs of €66,000 and monthly installments of €367 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 – €132,000
Estimated closing costs including all taxes & bank mortgage set up fees at approximately 15% – €19,800
Therefore the total cost of purchase – €151,800
Funds needed to complete (including 45% deposit value & fees) – €79,200 @ an exchange rate of 1.11 = GBP 71,352
Mortgage value (LTV) 55% – €72,600
Cost per month over 25 years at 2.00% interest rate – €310 @ an exchange rate of 1.11 = GBP 279
In summary, you could buy this Spanish property using a 55% mortgage with combined deposit and fee costs of €79,200 and monthly installments of €310 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
One important aspect to consider when buying overseas, is to have a plan in place on how you will transfer the funds required to pay for your property. We recommend using a currency transfer specialist such as A Place in the Sun Currency, as the savings you make on the exchange rate can be used to pay the additional costs such as furniture packages and legal fees.
If you would like more information on currency transfer, click here to contact us >>
Obtaining a Spanish mortgage on a property
Our friendly, bilingual advisors at Fluent Finance Abroad (FFA), will help you get the best exchange rates by liaising with the top high street banks in Spain, and help you learn more about obtaining a Spanish mortgage.
Financing your Spanish property in the UK
Our UK advisors can offer unbiased guidance and assistance for those of you who want to keep your finances close to home. From loans, remortgages and equity releases, they can help release funds from the UK to assist you in your property purchase.
For more information, please download our latest brochure here or contact us directly on 01202 971614 .