Information

Buying a property in Spain with a mortgage

Firstly determine your budget, as you would in the UK. Then calculate the amount of the mortgage you would need. In Spain you cannot finance 100%, which means that you have to have some of your own funds available.

Casahipoteca can arrange finance up to a maximum of 80% of the purchase or 80% of the valuation.

Example

Your new Spanish Villa has a purchase price of € 300,000

Therefore the mortgage amount available is € 300,000 x 80% =  €240,000 (subject to valuation)

In addition to this you will have approximately 11% in mortgage and purchase costs (a full breakdown of costs is available on request from Casahipoteca)

Purchase and mortgage costs € 300,000 x 11% = € 33,000

So in total to proceed with this purchase you would need :-

Balance between mortgage and purchase amount

€ 300,000 - € 240,000 = € 60,000

Plus Costs € 33,000 = a total amount of € 93,000.

Next you have to determine the type of mortgage you require.

Mortgage Type 1

Capital Repayment (also known as repayment) - This means each month you repay both some of the capital and interest borrowed. Thereby reducing your debt and by the end of the term the mortgage is paid in full.

Mortgage Type 2

Interest Only - This means each month you repay only the interest on the amount borrowed and at the end of the mortgage term you still owe the full amount borrowed.

Mortgage Type 3

Mixed Mortgage - This mortgage has an initial interest only term which then converts to capital repayment after a specified period of time, meaning initially your repayments are lower (you are paying only interest) but at the end of the term the debt will be paid in full.

Once you have decided what suits you best, you can apply for an "offer in principle" on our website (www.casahipoteca.com/mortgage_quote). The offer will be sent to you within 24 hours. Be aware that a maximum of 40% of your nett monthly income is allowed for mortgage repayments. The terms and conditions vary with every lender however mortgages are available up to age 80 or for a maximum term of 40 years.

With our mortgage calculator you can calculate your monthly installments and the maximum amount you can borrow (www.casahipoteca.com/mortgage_calculator). Click on the Mortgage Process to see which steps to take to arrange your Spanish mortgage.