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CHARGESMany first-time buyers are not aware of all the charges involved in purchasing a property in Spain. We pride ourselves on being open and honest and therefore are happy to disclose the fees of Mortgage Direct, which we believe you will find extremely competitive. We believe there should be transparency in this area, as many buyers feel brokers do not explain the charges properly to them. Here we explain these charges to you. Firstly, it should be realised that the costs of taking out a mortgage in Spain are higher than in the UK. As a general rule of thumb, we suggest allowing around 11% of the purchase price to cover all fees and taxes. In some circumstances, you may be asked to pay any estate agent commissions that are not incurred by the vendor. This is something you need to discuss with your estate agent. We have included an example of a second-hand property worth 150,000 EUR and a mortgage of 100,000 EUR to give you an indication of the charges involved in a typical house purchase. Please note, for the purpose of this example, we have converted the Euro into British Pounds using a conversion rate of 0.68 (note 1) |
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Notes 1. The Euro rate changes on a continuous basis and this figure is provided as a guide only. Figures are rounded to the nearest whole EUR or GBP. 2. The price reflected in the Escritura will often be lower than the actual purchase price and, for the purpose of this example, we have assumed the price in the deed is 130,000 EUR. 3. Bank Opening Fee:- In this example, 1.0% of the mortgage capital has been charged. This varies between the different banks. Mortgage Direct will not deal with any banks that charge more than 1.5%. 4. Administration Fee:- This is a level fee of 495 EUR, payable at the point of application to Mortgage Direct, once you decide to proceed with your mortgage application. If we fail to find you a suitable mortgage, this fee will be refunded to you (Money Back Guarantee). If you or the vendor withdraws from the sale, the fee will not be refunded but you will not be recharged on any future purchase. 5. The Arrangement Fee is 0.5% of the ³Mortgage Amount². This is payable to Mortgage Direct on completion of the property purchase (minimum 500 EUR). 7. To avoid confusion, we felt it necessary to mention that, in Spain, the convention is to use a full stop instead of a comma to denote thousands, e.g. the Spanish would use 1.000 instead of 1,000. The above figures are not guaranteed and are to be used as a guide only. |
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