January Mortgage News

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 €255,000 Costa Blanca home – with mortgages rates from 2.6%.

We do this once per 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 – 3-bed Villa in Pilar de la Horadada

Mortgage for property in Spain - 3-bed Villa in Pilar de la HoradadaThis month’s chosen property is a brand-new link detached villa in the traditional town of Pilar de la Horadada at the southern tip of the Costa Blanca. It is just one of six units that make up a smart development within walking distance of Pilar’s main square and extensive amenities, including supermarkets and a good selection of bars and restaurants. Torre de la Horadada, with its beaches, promenade and marina is just five minutes’ drive away, and the famous Mar Menor lagoon is also close by. Inside, the two-storey villa includes three bedrooms, two bathrooms and a kitchen connected to an open-plan living area. The outside space includes a private pool with jacuzzi, and front and rear terraces. What more could you need?

Purchase price: €255,000 (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: 2.6% interest rate fixed for a 20-year term

Property price: €255,000
Mortgage value (70% LTV) €178,500
MONTHLY REPAYMENTS  €954.60
Buyer’s completion costs
Deposit (30%) €76,500
Buying costs (notary/ fees/ taxes) €31,125
Mortgage set-up charges €7,868
TOTAL €115,493

To summarize, to purchase this property with a 30% deposit, a qualifying buyer would need to pay in the region of €115,493 (including all costs) and would then have monthly mortgage repayments of €954.60 fixed for 20 years.


Mortgage option 2 – 50% deposit

Mortgage product: 2.6% interest rate fixed for a 20-year term

Property price: €255,000
Mortgage value (50% LTV) €127,500
MONTHLY REPAYMENTS €681.85
Buyer’s completion costs
Deposit (50%) €127,500
Buying costs (notary/ fees/ taxes) €31,125
Mortgage set-up charges €6,092
TOTAL €164,717

To summarize, to purchase this property with a 50% deposit, a qualifying buyer would need to pay in the region of €164,717 (including all costs) and would then have monthly mortgage repayments of €681.85 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.