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It used to be pretty difficult to find Equity release mortgages in Spain. Equity release or Re-Mortgages were always frowned upon by the Spanish who traditional have a rather conservative view of Property and Finance.
Recently however many of the main stream Banks have started to realize that many people in Spain needed Equity release mortgages for a whole host of reasons and many of the banks will now consider applications.
The key question that the banks will ask when you apply for an Equity release mortgage is What is the money for?
In the UK we are used to just filling in some forms and waiting for the cheque to arrive. In Spain you will have to jump through a few hoops.
Providing that you are able to satisfy the bank with your reasons for wanting the Re-Mortgage you will need to supply them with copies of proof of payment of your current mortgage for the last 6-12 months. If you have ever missed a payment, even by just a few days the Bank may refuse your application.
You will also need to supply Proof of Income, A Residents Card, Passport, Tax Returns and of course the Deeds to your house. (Escritura).
Normally the amount you can borrow is determined by your income but the banks will not like giving Equity Release Mortgages that are greater than 50% of the value of the property. In some cases you may be able to push this to 60%.
In time you may find that as with other mortgage products, the Banks start relaxing the lending criteria and the amount they loan on Spanish Equity Release Mortgages.
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