What is an Interest only mortgage in Spain?
This is a mortgage, only available for a limited period of the term your mortgage during which you do not pay back the loan capital but just the interest. This makes the monthly payments lower but it means you are not reducing your loan amount. The loan purpose must be primary or second residence purchase, holiday home or equity release on an existing property in Spain.
How can I qualify?
Anyone can qualify for this type of mortgage although it is usually most suitable for all clients wishing to sell the property on at a later date.
What are the mortgage terms?
- Max LTV 60%-70%
- Max term 30 years
- Max age 75
- Rate Euribor plus 1%- 2%
- Max interest only term 30-40 years