Hipoteken’s monthly mortgage model
Unsure whether you could afford a mortgage? To help you budget, we’ve done a true illustration of the cost of buying a Spanish property using products available today.
For our example, we’ve picked a stunning apartment in Torrevieja on the market for €195,000. Read on to see how affordable your monthly repayments could be and what your total outlay (completion costs) would be to secure the property – or a similar one with the same purchase price.
The property
Ready to tap into the sunny lifestyle in friendly Torrevieja? This brand-new development is just 250 metres from the city’s Playa del Acequión beach and five minutes’ drive from the city-centre. Its fantastic location means everything you need for year-round living is right on your doorstep! And being on the southern edge of the city makes the beach resorts of Orihuela Costa just a 10-minute drive away.
Once completed in September 2022, there will be 42 units at the development, which is being sold by local agency HomeEspaña. Our chosen budget will get you a two-bedroom, two-bathroom ground-floor apartment with its own garden.
Included in the price are fully installed air conditioning, underfloor heating and a secure parking space. For peace of mind, the development will be gated while communal facilities will include sub-tropical gardens, three swimming pools – including a heated one, a Jacuzzi, sauna and fitness area!
This modern designed property is suited equally to full-time living or holiday use, for a family or couple. Its convenient location 35 minutes from Alicante and 45 minutes from Murcia airport makes it a cinch to get to any time of year.
Purchase price: €195,000 (excluding taxes and fees)
Tempted?
Have a look at how affordable this property could be with a Hipoteken 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).
For a more complete picture, we’ve also included approximate costs for all fees and taxes that would come with purchasing this property.
Mortgage Option 1 (30% deposit)
Mortgage product: 2.10% interest rate fixed for a 25-year term
Property price: €195,000
Mortgage value (70% LTV): €136,500
Monthly repayment: €585.23
Buyer’s completion costs
Deposit (30%): €58,500
Buying costs (notary/ fees/ taxes): €26,725
Mortgage set-up charges: €3,230
TOTAL: €88,455
To summarize: to purchase this property with a 30% deposit, a qualifying buyer would need to pay in the region of €88,455 (including all costs) and would then have monthly mortgage repayments of €585.23 fixed for 25 years. Monthly repayments could be reduced to €514.31 by opting for a variable rate deal based on products available today.
The 30% deposit can be paid in stage payments during the construction phase.
Mortgage option 2 (50% deposit)
Mortgage product: 2.10% interest rate fixed for a 25-year term
Property price: €195,000
Mortgage value (50% LTV): €97,500
Monthly repayment: €418.02
Buyer’s completion costs
Deposit (50%): €97,500
Buying costs (notary/ fees/ IVA taxes): €26,725
Mortgage set-up charges: €2,450
TOTAL: €126,675
To summarize: to purchase this property with a 50% deposit, a qualifying buyer would need to pay in the region of €126,675 (including all costs) and would then have monthly mortgage repayments of €418.02 fixed for 25 years.
Monthly repayments could be reduced to €367.36 by opting for a variable rate deal based on products available today.
What next?
Whether you’re buying in Spain as a non-resident or resident, speak to Hipoteken’s experienced team of mortgage brokers to discuss your mortgage options. After assessing your financial profile and personal requirements, we’ll find you the right product. If you’re ready to start house-hunting, your next step could be to secure a Agreement in Principle – we’re here to help.
Disclaimer – The above examples are based on mortgage products available through Hipoteken 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 higher 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.
