Reduce your mortgage costs
One thing we all want to do is to reduce our mortgage costs, but it used to be difficult to swap lenders in Tenerife because of the costs involved. Changes in law have made it much cheaper to remortgage a property. However, even though it has become easier to reduce costs with a different lender, finding the right deal to suit you can be difficult. Not only is there a language barrier that prevents many foreign mortgage holders from accessing some of the best offers on the market, but the market itself is rapidly changing.
|Recent legislative changes ratified in December by the Spanish government have been developed to reduce the costs |
of a re-mortgage in Spain when you are moving your mortgage to a new lender. In some circumstances, you can avoid having to pay the mortgage deed tax applicable on all borrowings in Spain and currently set at 1.8% of the mortgage.
Some lenders are actively marketing products where all other costs like existing redemption penalties and Notary and Registry costs are covered by them making the transfer of a loan either free or certainly cost far less. The new legislation will also reduce dramatically, the cost of taking a re mortgage with another bank where subrogation is possible. Because it allows any changes to terms to be included on one deed instead of the previous three.
One problem for the borrower is that many mortgage products are released with a cap on the number of borrowers that can take advantage of it. As soon as enough borrowers have enrolled, the product is removed. This makes it difficult for even Spanish people to sift through the rapidly changing array of mortgages, let alone foreigners. Finding an independent mortgage advice in Tenerife, that you can trust, is not an easy job, but a good start is to fill in a prequalification form on this website to find out how much you can save.