MORTGAGES COSTS AND LEGAL FEES
We inform you that  when  you are buying a spanish property, and if you will need a spanish mortgage, you  will have purchase costs and mortgage costs.
 The purchase costs will be around 10% of the purchase price. (click here to know the purchase cost).
If you are obtaining a mortgage, to the purchase costs ( around 10%) it´s neccesary to add the mortgage costs.
The costs of a mortgage can be summarised as follows:

• Mortgage broker fee
• Bank valuation fee
• Bank arrangement fee
• Stamp Duty
• Notary fees
• Property register fees
• Insurances ( life and property insurances)

Broker fee
Our fee to arrange the mortgage is the 1000€+ 16% VAT = 1160€
Bank Valuation Fee
Calculated as a percentage of the valuation but is normally in the region of 300 to 500 euros. For larger properties the rate can become 1% of the valuation.
Bank Arrangement Fee
Normally between 1% to 1.5% of the mortgage amount.
Stamp Duty (Impuestos Actos Juridicos Documentados)
This is a tax applicable to obtaining a mortgage, which is 1% of the mortgage liability.
Notary Fee
In the same way the purchase has to be inscribed in front of a notary, the mortgage deed must also be inscribed and the notary will make a charge for this.
These fees vary depending on the guaranteed capital of the mortgage (Between 500-1000 Euros).
Property Register Fees
These fees vary depending on the guaranteed capital of the mortgage (Between 500-1000 Euros).
Life and Property insurances
The banks normally require the borrower to contract, at least, a property  insurance to protect its interest until the loan is repaid. Now the life insurance is usually and will cover the amount of the mortgage. The insurance fee must be paid at the moment of the deed signature (more or less 600-1000 Euros.)

We have included an example of a second-hand property of 150,000 EUR and a mortgage of 100,000 EUR to give you an indication of the charges involved in a typical house purchase.