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In December, 2007, the Spanish government changed the legislature in order to reduce costs associated with transferring or subrogating, or those costs associated with an existing loan in Spain being re-mortgaged to a new lender. Another reason to transfer is to avoid paying taxes a second time which can happen to borrowings in Spain. Various reasons to re-mortgage to a new lender, disbursing fiance from your Spanish home so that you do not have to personally cash in one mortgage to begin a new one. Here are the three main reasons to do this:

1. Your interest rate on the property will be decreased.
2. You will have longer to pay off your mortgage.
3. If you have to default, your penalty will be decreased.

Several lenders are enthusiastically pitching products that indulge overall expenditures affiliated with them such as current redemption amercement and fees accompanied with Registry and Notary are included in the proposal. As a result, the transfer of the loan to another lender is either free of charge - or offered at significantly reduced cost compared to obtaining a re-mortgage with another bank (where subrogation is possible). By allowing changes and amendments to terms to be made on just the one deed rather than all of the prior deeds, the subrogation is allowed.

If you feel stuck with a mortgage product with a high cost and no flexibility or you want to change your mortgage terms for some other reason, then you will need to know how to release finance from your Spanish home. This will let you to extract at least part of the value from your real estate in Spain during and after the process, without having to struggle through expensive or unneeded complications.

A different way to see this. The Spanish property boom and the fluctuating rates of exchange between Sterling and the Euro, has meant that many people who are invested in the market are long on property and short on cash deposits. Lifelong mortgages are preventing the release of equity from these investments, which denies the owner protection against unforeseen events affecting their financial situations. Fortunately, there are no products available that allow a percentage of a Spanish home’s value to be made available for investments or used as cash to add to one’s income or improve quality of life even. This financial product offers a fixed rate rather than a variable interest rate so that the loan payment stays constant and the full amount owed is clear even if circumstances do happen to change over time.

For expert advice on spanish remortgages contact International Mortgage Solutions based in Marbella, Spain.