If you have sufficient equity in your Spanish property, it may be possible to raise capital at low mortgage rates for purposes such as:-

Very often, Spanish property owners wish to borrow money to fund major purchases rather than use “nest egg” savings. However, they do not wish to pay the high interest rates associated with unsecured lending which can be well in to double figures.

Equity release in Spain 

Below is some general product information, for full product info check out Best Spanish Mortgage Deals

General Product information

Maximum Mortgage Loan

The maximum loan available to non residents for capital raising is 60% of valuation.

Interest only mortgages

Interest only Spanish mortgages are available for capital raising but are limited to the first 5 years of the mortgage.

Interest Rates

Spanish mortgages track one of the Spanish Euribor base rates with a fixed margin above that base rate for the term of the mortgage.

Mortgage Term

Spanish mortgages are available over terms of 10 to 40 years but the loan has to finish by age 75.

Arrangement fees

Spanish Banks usually charge an arrangement fee of between 1% and 1.5% of the mortgage loan and this is deducted from the mortgage amount they are granting.

Early repayment penalties

The maximum early repayment penalty allowed by the Bank of Spain is 0.50% of the outstanding balance and must reduce to 0.25% after 5 years.

Life Assurance

Most Spanish banks insist that a life assurance policy is taken with a mortgage. This will usually be a policy they arrange for you and will normally cover the mortgage loan in full or in part.

Proof of Income

Spanish Banks need to fully assess your circumstances and ability to repay a mortgage. Below is a typical list of what is required although some banks do request more:-