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Lifetime Loans

Due to the current state of the Spanish Mortgage Market we are unable to offer the range of products we once could - please contact us via email and will update you once this changes

What are they?

A lifetime loan is designed to run for the rest of your life, it is a simple way to release equity, for any purpose, from your Spanish property.

  • No income proof required
  • The money is available as a lump sun
  • You retain full ownership of your property
  • "No negative equity guarantee" provided
  • The highest loan to valuation ratio in Spain
  • You are not required to make any monthly payments - ever
  • You are not required to make any investments
  • Free consultation with our panel of solicitors

If you’re aged 65 or over, these plans allow you to borrow a percentage of your Spanish Property value without having to make any monthly payments of interest or repayments of the loan. Each year (or month) interest is added to the loan and also to any interest that has previously been added.

Unlike a conventional mortgage, with a Spanish Lifetime Mortgage there is no set repayment date. The loan becomes repayable on the sale of the property, when the last applicant dies or moves into long-term care. The amount repayable will include all the interest that has been added. If the loan is repaid for any other reason, an additional early repayment charge may be payable. If there is excess equity upon death this will be returned to your estate once your account is settled.

The amount you can borrow is calculated from your age(s) and the value of your property. The younger you are, the longer the Spanish Lifetime Loan will have to roll-up and the higher the risk that it could erode all of your equity. To allow for this, the plan providers only allow younger applicants to borrow a small percentage of their property value. We only recommend plans with a “no negative equity guarantee” therefore your debt can never exceed the value of the property.

Although a mortgage with no monthly payments can appear attractive, the total loan with rolled-up interest can increase rapidly, especially after a number of years. It’s easy to assume that house prices will continue to increase each year, but there is no guarantee of this.

In effect, a roll-up mortgage is a race between how much the total loan increases to each year, compared with how much your property is worth each year. The difference is the amount you, or your estate, will receive when your loan is finally repaid. If the Spanish Lifetime Mortgage is as much or more than the value of your property, there will no longer be any value for you or your family to benefit from.

Obviously, the longer you live, the higher the amount of interest that will have to be repaid

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We strongly recommend a slow approach to this using full consultation with independent lawyers and your family. We are happy to assist with this and offer a free consultation with our panel of independent lawyers. Click here to make the first steps

"Currently we do not have a lifetime mortgage product available, look back later for an update"

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