Costa Blanca
ApartmentsLinked Villas
Detached Villas
Murcia & Costa Cálida
ApartmentsLinked Villas
Detached Villas
Valencia Region
ApartmentsLinked Villas
Detached Villas
Interest-only overdraft-type mortgage
The Elastic Mortgage is in effect an overdraft facility, which will permit you to obtain funds up to a certain maximum credit limit as and when you require them. Depending on your age, this facility may include a interest only term of up to 15 years.
The interest rate is calculated on the Spanish base rate plus a certain percentage, depending on the loan to value ratio.
The difference with this mortgage is that you are responsible for paying off the loan as there are no compulsory "capital" repayments at all. In addition you pay interest only on the outstanding amount of the loan. Therefore say Mr Brown borrows 100,000 Euros on an Elastic Mortgage scheme, he would be paying the same amount of interest for the period if he were never to pay off any capital.
However, should Mr Brown wish to pay off capital in lump sums for example, eg after a good rental period or if he were to recieve dividends, bonuses, golden handshake etc then naturally the amount of money borrowed would be reduced and the monthly interest payments would also be reduced as a result of less money being borrowed.
|
Date |
Amount of loan |
Capital paid off |
Amount of loan remaining |
Monthly Interest payment |
|
January |
150,000 |
- |
150,000 |
421.25 |
|
Feburary |
150,000 |
- |
150,000 |
421.25 |
|
March |
150,000 |
- |
150,000 |
421.25 |
|
April |
150,000 |
- |
150,000 |
421.25 |
|
May |
150,000 |
- |
150,000 |
421.25 |
|
June |
150,000 |
3,000 |
147,000 |
412.83 |
|
July |
147,000 |
3,000 |
144,000 |
404.40 |
|
August |
144,000 |
5,000 |
139,000 |
390.36 |
|
September |
139,000 |
3,000 |
136,000 |
381.93 |
|
October |
136,000 |
1,000 |
135,000 |
379.13 |
|
November |
135,000 |
- |
135,000 |
379.13 |
|
Decemeber |
135,000 |
- |
135,000 |
379.13 |
