Spanish Mortgage

loobylou67

Hi we have a spanish repayment mortgage and would like to change to an interest only mortgage for a few years, until things get a little easier. It does not seem the right time to sell in Spain at the moment so thought would give this a go. Does anyone know best way to remortgage our Spanish property because I am hitting brick walls at the moment. The mortgage is only for 50% of the value of the house. Please if anyone can help.

Thrugelmir

Who is your current mortgage with?

sheslookinhot

loobylou67 wrote: »

Hi we have a spanish repayment mortgage and would like to change to an interest only mortgage for a few years, until things get a little easier. It does not seem the right time to sell in Spain at the moment so thought would give this a go. Does anyone know best way to remortgage our Spanish property because I am hitting brick walls at the moment. The mortgage is only for 50% of the value of the house. Please if anyone can help.

The value when you bought it or a recent valuation ?

loobylou67

Hi our current mortgage is with Bancaja?

loobylou67

Hi this was a recent valuation. Thanks.

andydw

It can be very expensive to remortgage in Spain which is why it is very important to get your mortgage right when you set it up. There is nothing like the re-finacing product range available to non-residents in Spain that you would find in the UK (even in this market!)

It may be possible to subrogate (transfer your existing mortgage) to another lender to reduce the interest rate, lengthen the term or possibly to look at interest only but a lot depends on the valuation as many banks have a minimum valuation now (seems they are looking above the 1 bed apartments for 90,000€ as a target market...)

Some lenders will pick up the transfer costs if the figures fit their criteria - if they wont do this it may still be worth looking at but you´d really need to consider if it is worth all the hassle.

Let me know what your property is valued at and the outstanding mortgage amount and I can tell you if you fit a subrogation to interest only option.

loobylou67

Hi Many thanks for your email. Our property is worth 300,000 euros and the mortgage owed is 154,000 euros. But as it is on repayment and only 8 years left the payments are 1600 euros per month which at the moment we just can't afford?? Can you let us have some more information.

herbiesjp

You could have options over here in the UK.

Are you living here in the UK?