+ 44 (0) 1844 218 957
+ 44 (0) 1844 218 956
Independent Financial Adviser est. 1988
French and Spanish Mortgage Brokers
French Tax Planning Specialists

Spanish Mortgage Deal of the week

Thursday, 31 October, 2019
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SPANISH  MORTGAGE DEAL OF THE WEEK

 

 

            EUROS

Mortgage amount

            210 000

Interest rate FIXED

                 2.10%

Mortgage payment pm

            1072.33 

Life assurance at normal terms (pm)

                58.80

Term in months  

                  240

APRC

                 2.90

         

Background

  • The purchase price of the Spanish property  300 000 Euros 
  • The mortgage represents a loan to value of 70% of the purchase price 
  • Whilst all long term fixed Spanish interest rates carry early redemption penalties equal to 6 months interest , (capped at 3% of the outstanding mortgage capital) , the bank agreed to waive the l early redemption penalties after an initial period ,enabling our client to repay capital, when it is convenient and  when the funds are available to do so.
  • The bank does not require a side investment
  • The client is to take out a burglar alarm system    
  • The bank opened a Spanish bank account and provided a VISA card. 

The savings

  • At outset the bank was advertising a fixed rate of 2.75% over a term of 15 years 
  • The bank agreed to reduce this to 2.10% and extend the term by 5 years to 20 years 
  • The bank paid the mortgage registration fee of 2700 Euros  

 APRC (annual percentage rate of charge)

 This calculation is based on estimated costs being calculated over the whole mortgage term .  The table below summarises these  :

                                                                        

Associated COSTS

EUROS

The bank arrangement fee

  1 500

Our fee

  1 380

Cost of burglar alarm

     295

Total cost of credit including life assurance

59 872

 

Please contact us if you would like to discuss your mortgage requirements - mortgages@charleshamer.co.uk .  Tel 01844 261886 / 218957

 

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