Since Spanish mortgages are full status only, so you will need to bank statements of your income and outgoings every month. The loan itself can be used not only to purchase the property but can pay for other investment such as renovation. It is also possible to get a remortgage for a property through certain lenders. Remortgaging is the process of recalculating the mortgage on your house, as you may want to find a lower rate of interest mortgage or one which is better suited to your needs and financial situation. This involves keeping existing levels of debt and applying for a better deal on interest or mortgage type. You may also transfer some equity form your house fund to finance additional requirements. Both Euro and Sterling mortgages are available, the amount borrowed depends on the bank chosen. Most home loans are repayment mortgages. The monthly payments in this are used to cover both the capital of the loan and the interest due on the capital. Thus your debt reduces gradually. There are two types of repayment mortgage. The first is an equal amount payment scheme every month. The second type the payments monthly are based on interest and thus at the outset the interest is highest. Later on as the capital decreases, the interest payable decreases. This means that early repayments will be dominated by interest, but as the loan is slowly repaid, a greater percentage of each subsequent repayment goes towards paying off the capital.

Another type of mortgage is interest-only mortgages where the mortgage duration can be anything from 5 years through to a 25 year term. Interest only mortgages charge only the monthly interest. The capital must be paid in the form of investment into an endowment policy, a pension plan or possibly an Individual Savings Account (ISA). Mortgages are required to be repaid in full by the borrower’s 70th birthday. Hence the investment must yield the entire capital at maturity or by this time. The mortgage itself is secured against the Spanish property.