Mortgage refinance Spain

Mortgage refinance Spain

Refinancing an existing mortgage on a Spanish home is possible with some banks, but on modified terms. Furthermore, it is only possible to transfer loans that are notarized and with a mortgage guarantee.

The costs can be significant. Especially if a high loan prepayment penalty is involved.

‘Revolving’ or refinancing an existing mortgage resting on the Spanish home is possible with some Spanish banks. The condition is that the current loan is notarized with a mortgage guarantee. Otherwise, banks don’t want to refinance.

The conditions under which Spanish banks are willing to refinance are often different from those of a regular purchase. Typically, one is more cautious and one looks with critical eyes at the motive for refinancing. This is often reflected in a lower maximum financing rate and a shorter term.

When refinancing/transferring, you will face costs such as deregistering the existing mortgage and registering the new mortgage. But also with the bank’s filing fees, advisory fees and most importantly; the penalties for early repayment of the existing mortgage.

The key question, of course, is whether the costs outweigh the benefits.