The availability of Spanish Interest only mortgage has proven very popular with UK clients.  As the Banks start to regain their appetite for non-resident mortgage business, they will need to offer a desirable product range to attract new clients which will inevitably include interest only mortgages.

Spanish Interest Only Mortgages

Spanish interest only mortgages were widely available up until 2008 when the global credit crunch took it´s toll on the Banking system.  With falling property values in Spain and strong demand for interest only products, most Banks withdrew their range leaving only a modest selection to choose from.  At the time of writing, the maximum interest only term available is 5 years.  After this period, the mortgage would automatically revert to a capital and interest mortgage for the remaining mortgage term.

The British Banks lending in Spain, such as Lloyds, Leeds building society and Royal Bank of Scotland seem to recognise the demand for interest only products more than Spanish Banks and understand the needs of a UK client wanting to buy a property abroad.  Although not all of them currently offer interest only mortgages, we believe they are set to return some time soon.

While some people are against the idea of interest only mortgages, they do of course have their place in the market and are typically requested for reasons such as:-

- You intend to rent out your property and wish to benefit from rental income on a monthly basis

- You wish to sell the property in a relatively short period of time and have therefore have no intention of paying capital and interest

- You are going to realise an investment or selling a large asset which will in turn redeem your Spanish mortgage again negating the need to pay capital and interest payments each month

Easy Mortgages Spain has access to Spanish interest only mortgages so please contact us to find out more.