Costs and documents required for Remortgage
Documentation required for a Remortgage if you are self-employed:
- Last 3 months bank statements (Upto 12 months)
- Last 3 months Spanish mortgage statements
- Latest Self Assessment
- Accountants Reference
- Credit Report from Experian or Equifax
- Occasionally you may be asked for a bank reference
- Property deeds
Costs involved in a standard 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 have to first cancel your existing 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.
Subrogating your Spanish Mortgage
However, there is also the option in Spain to Transfer your mortgage to a bank with a better rate of interest. This is call 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 or a better mortgage with a new bank or your existing bank gives you better mortgage terms.
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By N2H