Maximum borrowing with a Spanish mortgage
The size of mortgages available in Spain is constantly changing. We keep our information completely up to date so rest assured, what you read here is what is currently available on the market.
Today, the most you can borrow for your mortgage in Spain is 80% of the purchase price. However this is limited to 70% of the valuation of the property. What this means is in order to achieve a mortgage of 80% the property must be valued at a higher amount than the price you buy it for. Since nobody can predict what any property is going to value at, nobody can guarantee you an 80% mortgage.
For these reasons you need to speak to a professional broker before you part with any money.
If you are able to raise a Spanish mortgage for 80% then you need to make up the difference (20%) plus the associated costs which are between 10% and 12%.
A quick example:
100,000€ purchase price
80% mortgage = 80,000€
20% required = 20,000€
Plus 12% costs = 12,000€
Total funds required = 32,000€ or 32% of the purchase price
To make the same calculation for a different price simply multiply the purchase price by 0.32 to see how much cash you will require (200,000€ x 0.32 = 64,000€ for example.)
Remember that 80% mortgages are not available to all applicants or for all properties so this is the minimum amount of cash required.
If, instead of 80%, you are only available to borrow 70% then the figures will be:
100,000€ purchase price
70% mortgage = 70,000€
30% required = 30,000€
Plus 12% costs = 12,000€
Total funds required = 42,000€ or 42% of the purchase price
As in the first example, a quick way to calculate how much cash you need is to simply multiply the purchase price by 0.42 (100,000€ x 0.42 = 42,000€)
I have 75,000€ cash, What can I afford with a Spanish mortgage?
If you are coming to Spain to look at property and you have a set amount of cash to spend you may want to calculate the maximum purchase price is that you can afford. There is a very simple way to do so:
With an 80% mortgage you just multiply your cash available by 3.125 eg:
With 75,000€ cash available to spend.
75,000€ x 3.125 = 234,375€
234,375€ is your maximum purchase price with an 80% mortgage, taking into account all costs.
With a 70% mortgage the process is exactly the same but you multiply your cash amount by 2.38 eg:
With 75,000€ cash available to spend
75,000€ x 2.38 = 178,500€
178,500€ is your maximum purchase with a 70% mortgage, price taking into account all costs.