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February Mortgage News

Mortgages in Spain

To help you budget for your Spanish property purchase, HomeEspaña’s sister company, HomeFinance (who provide financial services for expats in Spain) has prepared this illustration of how a Spanish mortgage could be used to buy a €299,000 Costa Blanca home – with mortgages rates from 2.65%.

We try and do this every month, featuring different properties, budgets and deposits. If you’d like us to look at a scenario specifically for you, email us on: [email protected]

The Property – 4-bed villa in Denia

Mortgages in SpainThis month’s chosen property is a four-bedroom detached villa with its own pool in Dénia, a popular year-round resort in the northern Costa Blanca. The property is in the sought-after La Pedrera neighbourhood and five minutes’ walk from local amenities and choice of restaurants. The centre of Dénia is a 20-minute walk, the beaches and marina a five-minute drive. Inside, the ground floor boasts a large kitchen, spacious living/dining area and a bedroom with en-suite shower room. Upstairs are three more bedrooms, including the master with a large balcony, and a family bathroom. Patio doors from the living area lead to the large pool area and garden. There is also off-road parking.

This fabulous property is equally suited to full-time living or holiday use, for a family or couple. And its convenient location around an hour from both Alicante Airport and Valencia Airport makes it a cinch to get to any time of year.

Purchase price: €299,000 (excluding taxes and fees)

Tempted? Have a look at how affordable this property could be with a Home Finance mortgage, outlined below. We’ve worked out two examples – one based on the buyer paying a 30% deposit (option 1) and the other based on a 50% deposit (option 2).

To keep things true to life and help buyers avoid nasty surprises, we’ve also included approximate costs for all fees and taxes that would typically come with a property purchase like this.


Mortgage Option 1 – 30% deposit

Mortgage product: 2.65% interest rate fixed for a 20-year term

Property price: €299,000
Mortgage value (70% LTV) €209,300
MONTHLY REPAYMENTS  €1,124.44
Buyer’s completion costs
Deposit (30%) €89,700
Buying costs (notary/ fees/ taxes) €31,850
Mortgage set-up charges €6,940
TOTAL €128,490

To summarize, to purchase this property with a 30% deposit, a qualifying buyer would need to pay in the region of €128,490 (including all costs) and would then have monthly mortgage repayments of €1,124.44 fixed for 20 years.


Mortgage option 2 – 50% deposit

Mortgage product: 2.65% interest rate fixed for a 20-year term

Property price: €299,000
Mortgage value (50% LTV) €149,500
MONTHLY REPAYMENTS €803.17
Buyer’s completion costs
Deposit (50%) €149,500
Buying costs (notary/ fees/ taxes) €31,850
Mortgage set-up charges €6,043
TOTAL €187,393

To summarize, to purchase this property with a 50% deposit, a qualifying buyer would need to pay in the region of €187,393 (including all costs) and would then have monthly mortgage repayments of €803.17 fixed for 20 years.


What’s next?

Whether you’re buying in Spain as a non-resident or resident, speak to Home Finance’s experienced team of mortgage brokers to discuss your mortgage options. After assessing your requirements and personal circumstances, we’ll find you the right product. If you’re ready to start house-hunting, your next step could be to secure a mortgage in principle – we’re here to help.

Speak to a Mortgage Expert

Disclaimer: The above examples are based on mortgage products available through Home Finance at the time of publication, however they are meant as a guide only and cannot be guaranteed to any client at any time. As a guide, shorter mortgage terms will mean lower interest rates. The featured property was available to purchase at the time of publication but its availability cannot be guaranteed to any client at any time. The included buying fees/charges are also meant as a guide only.