Remortgage in Spain
Remortgaging in Spain is different to other countries – moving lender on a regular basis to gain better rates or release equity , which is standard in other countries, if often not a cost-effective choice when it comes to Spanish property.
However, there are remortgage options available, and out team can help you find the best deals.
Unlike many other countries, remortgaging to get a better rate n Spain may well come with costs that outweigh the benefits of a lower interest rate, so it’s important to consider your options for raising capital from your property very carefully.
The criteria for remortgage in Spain may be tighter than those in the UK – for example, Spanish mortgage lenders may only offer remortgage to fund home improvements or for buying another property in the same country, meaning that remortgaging your Spanish property to pay off UK debts or finance a UK home purchase may not always be possible.
How does a remortgage in Spain work?
There are two ways in which a remortgage in Spain can be carried out. The first is through closing your existing mortgage and setting up a new one. Bear in mind that all the standard costs of taking out a new mortgage will apply.
The second option for a remortgage in Spain is subrogation. In Spain you can subrogate or transfer an existing mortgage to a new mortgage lender. Not all Spanish mortgage providers will do this and they are not obliged to do so – you will also have top seek legal advice to ensure that ll procedures are followed correctly. Subrogation has the benefit of reducing significantly the cost of moving by avoiding mortgage deed tax; a cost that is applicable on all new mortgages in Spain, and usually equals around 1.8% of lending.
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