Re- mortgages,release of equity, or re-financing against an unencumbered property in Spain

What are the market conditions like in Spain for re-mortgaging, re-financing and release of equity

Since 2007 many Spanish Banks have withdrawn from providing refinancing in Spain. Providing only straight forward purchase mortgages on residential properties. Despite these limitations, some options may remain. Normally release of equity itself is only considered where the funds are to be used for improvements on the property itself or to buy another property in Spain. Moving new mortgage funds out of Spain is not possible. Because the Spanish Banks keep control of the funds to ensure they go to their designated use.

For high net worth individuals wishing to re-finance or release funds to invest at least some Private Bank options exist as an option. In all instances it is required you are private banking client and minimum entry level is e 1m under management.


Remortgaging, for either current capital owed, or a reduced level is only offered by one Bank in Spain. No lender has a standard re-mortgage product. Spanish Banks are not focussed on this type of lending.

A few more banks in Spain may consider taking on a loan. When it is currently held by another lender. Where the mortgage was set up on a fixed term on interest only. The term has finished and capital must be repaid. Therefore for Mortgage holders at this point where loan must be redeemed.  A handful of lenders may consider allowing the refinancing, so the existing lender can be paid.

Where this is the case the refinancing in Spain applicants can expect to have to reduce the level of owed. Have to move to repayment. Also cost of any move will equate to around 2% of borrowings.  There are no specific products so any application made is dealt with very much on a case by case basis.

Contact us today for information if you are in this situation.

Loan to Values for release of equity in Spain

Release of equity when refinancing in Spain is potentially available up to 60%. Destination of funds will have to meet the Banks required criteria. Banks in Spain will keep control of where and to whom the funds get paid. This is to ensure they go to their designated and agreed use. With all Spanish based lenders taking the money out of Spain after release is not allowable.

For Normal rules can be flexed for low loan to values. In particular the Bank not controlling what happens to the funds.

Considering trying to raise funds from your Spanish property. IMS offer a free info and approval in principle service. Therefore before you commit, you will know what level of funds you could raise. Also if any restrictions apply to what the funds are used for.

Are there any other options for refinancing in Spain

At this present time it is not possible to raise funds against a property in Spain other than with a Spanish bank for improvements or assistance in buying another property in Spain or a Private Bank where you can become a private banking client. Private lenders may consider this but this will always be at very high rates.

Spanish Mortgage product types for refinancing in Spain

Equity release in Spain. Where funds are released mortgages are normally variable trackers. Most lenders link to the 12 month Euribor plus a margin above. All loans are of a repayment nature unless with a private Bank. There are no lifetime style loans available. Nor ones with long term interest only payments.

Loan refinancing

What sort of interest rates can I expect in Spain when raising new funds

Few lenders offer the facility to release new funds. Choice is limited. Where the Bank offers the option it is normally at their standard purchase mortgage pricing

Margin ranges differ from Bank to Bank, but in general you can expect to pay around 4% above the 12 month Euribor.

To find out what product what might suit you
email us today with an overview of your situation and what you require