Costs and documents required for Remortgage

Documentation required for a Remortgage if you are employed:

  • Last 3 months bank statements
  • Last 3 months pay statements
  • Last 3 months Spanish mortgage statements
  • Most recent P60
  • A letter from your employer confirming your role, length of service and salary
  • Credit Report from Experian or Equifax
  • Occasionally you may be asked for a bank reference
  • Property deeds

Costs involved in a Remortgage:

The costs to Remortgage can be included in the new mortgage meaning you rarely have to pay anything upfront other than the valuation.

An approximate breakdown of costs if you cancel your current mortgage and take a new mortgage:

  • Mortgage deed tax 1.8%
  • Notary fees 0.75%
  • Bank Arrangement fee 1%
  • Valuation € 300

Because of the costs outlined above, remortgaging in Spain is very expensive. However, there is also the option in Spain to Transfer your mortgage to a bank with a better rate of interest. This is called subrogacion. The advantage of subrogating your Spanish mortgage is that the costs are substantially reduced.

In order to subrogate your mortgage the new bank must better your existing mortgage terms. The bank then contacts your current bank who have a set period of time in which to accept and release your mortgage or match the new banks terms. For you, it is win-win. You either move to a better mortgage with a new bank or your existing bank improves your mortgage terms.
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