Costa Blanca
ApartmentsLinked Villas
Detached Villas
Murcia & Costa Cálida
ApartmentsLinked Villas
Detached Villas
Valencia Region
ApartmentsLinked Villas
Detached Villas
Redeeming the loan
Most Spanish lenders charge a redemption penalty if you wish to pay the loan off earlier. However, this does vary according to lender and the type of loan you take out. Sunshine Villas has negotiated a nil redemption penalty for interest-only loans.
CAPITAL REPAYMENT MORTGAGES
INTEREST-ONLY & OVERDRAFT-TYPE MORTGAGES
Most Spanish lenders charge penalty of 0.5 and 1% to redeem the loan. In these 2 cases, however, there are no redemption penalties. So if mid-loan you decide to pay an amount off, whether full or in part you will not be penalised.
Please note that there will be costs involved in going to the Notary and lifting the charge as is the norm in Spain. Costs vary according to amount borrowed. Please for contact us specific costs.
In the case of an Elastic Mortgage, however, if you still wish to hold on to the facility for maybe a further purchase like buying a car or going on a cruise then there would be no need to go to the Notary. You could again just borrow up to the term of your facility and pay interest on the amount borrowed.
