You are here: Home >> Lenders >> Equity Release Mortgages
Spanish Equity Release Mortgages
In the past, it has been a bit of a struggle finding, let alone completing a equity-release mortgage in Spain. Equity release or Re-Mortgages used to be frowned upon by the Spanish who, traditionally, have a rather conservative view of property and finance.
However, recently many of the main stream Banks have started to realise that many people in Spain needed Equity release mortgages and these days, many of the banks in Spain will now consider / accept applications.
The main thing to consider when applying for an equity-release mortgage in Spain is the fact that the banks will always ask what the money is for and in most cases, this is what the banks base their decision on.
In the UK we are used to just filling in some forms and waiting for the cheque to arrive. Spain is a different story. Providing that you are able to satisfy the bank with your reasons for wanting the loan, 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 (the 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.
View a full list of items you will need to complete your Spanish mortgage by viewing our Spanish Mortgage Checklist.