Spanish Mortgage News

Mortgages in Spain: What will my monthly repayments look like? 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 €150,000 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 Villamartin

Spanish mortgage - 3-bed Villa in VillamartinThis month’s chosen property is a sunny semi-detached villa in one of Orihuela Costa’s most popular spots, Villamartín, within walking distance of the popular Villamartín Plaza. A selection of beaches and golf courses, as well as the landmark La Zenia Boulevard shopping mall, are all just a short drive away.

Purchase price: €150,000 (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 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: €150,000
Mortgage value (70% LTV) €105,000
MONTHLY REPAYMENTS  €561.53
Buyer’s completion costs
Deposit (30%) €45,000
Buying costs (notary/ fees/ taxes) €16,700
Mortgage set-up charges €4,725
TOTAL €66,875

To summarize, to purchase this property with a 30% deposit, a qualifying buyer would need to pay in the region of €66,875 (including all costs) and would then have monthly mortgage repayments of €561.53 fixed for 20 years.


Mortgage option 2 – 50% deposit

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

Property price: €150,000
Mortgage value (50% LTV) €75,000
MONTHLY REPAYMENTS €401.09
Buyer’s completion costs
Deposit (50%) €75,000
Buying costs (notary/ fees/ taxes) €16,700
Mortgage set-up charges €4,725
TOTAL €96,425

To summarize, to purchase this property with a 50% deposit, a qualifying buyer would need to pay in the region of €96,425 (including all costs) and would then have monthly mortgage repayments of €401.09 fixed for 20 years.


What’s next?

Whether you’re buying in Spain as a non-resident or resident, speak to HomeFinance’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.