Remortgaging In Spain
Re-mortgages with or without extra funds
Re-mortgage your existing loan and cover costs of subrogation. Costs covered include valuation, notary and registry costs and up to 0.50% of your existing banks redemption penalty. Minimum loan size € 140.000
Re-mortgage existing loan and secure a fixed rate of 3.20% fir 5 years followed by Euribor plus 0.49%. Hedge against rate rises now. Bank covers up to € 3.000 of your fees.
There are two ways of moving your existing mortgage.
One is to subrogate or transfer existing loan to a new lender. Not all lenders will subrogate but if they do you will have to meet and follow the laid down procedure as per the government legislation of 2006. Subrogation has the benefit of reducing significantly the cost of moving by avoiding mortgage deed tax a cost that is applicable on all new loans in Spain and equates to 1.8% of lending.
The second means of re-mortgaging is straight forward closure of one loan and instigation of a new one. In this instance you have no government process to follow and are free to leave your existing lender at will; however all costs of moving the mortgage including mortgage deed tax will apply. In total these costs will be around 4% of lending and include all the costs above and mortgage deed tax.
