The maximum mortgage you will get in Spain is normally 70% of valuation although in exceptional circumstances this might be as high as 80%.  Frequently however, depending on the type of property and the valuer’s appraisal the figure will be nearer 50% of the purchase price (basically campo property has for a long time been neglected and unwanted across the whole of Spain, the current upsurge of interest is driven by foreign buyers and has bemused the locals. Spanish valuer’s tend to reflect local tastes and preferences and therefore tend to under value.) 

Mortgages have traditionally been paid off in Spain over 10 – 15 years but exceptionally our recommended broker can get this extended to 25 years subject to provisos such as your age.

2. Costs.

We normally reckon on the costs associated with your house purchase coming to about 10% but when a mortgage is involved there will be extra costs (valuation, arrangement, land registry and notary fees for a start) so you need to allow 12%. More importantly these costs will have to be paid from your capital. So, for example, if you buy a house for 100,000 Euros and have a valuation for this amount you can aim at a 70% mortgage. This leaves you with 30,000 Euros to find to complete the purchase price plus 12,000 Euros costs so the minimum capital needed would be 42,000 Euros.

A more likely however would be a valuation of about 75,000. Based on a 100,000 Euro purchase price the mortgage would be 52,500 leaving a shortfall to complete of  47,500 + 12,000 costs = 59,500

3. Actual Case Study.

Budget GBP 47,000 (70,500 Euros @ 1.50. 68,620 @ 1.46) + mortgage.

Property Price                                 115,000

70% Mortgage 115,000 x 70% = 80,500

30% Balance                            34,500

12% costs                                13,800

Capital Needed                          48,500

Valuation at 75%                       86,250

70% mortgage 86,250 x 70% =   60,375

Balance needed to buy               54,625

12% Costs                                13,800

Capital Needed                          68,425

4. Advice