Getting a Mortgage in Spain After Divorce

A practical aspect of divorce in Spain is that a new home is usually required by at least one of the spouses.
Of course, if you continue to be obligated to pay the mortgage on the matrimonial home, you will be effectively applying for a second mortgage and you are going to find that while prices have come down from the peak of a few years ago, the range of mortgages available has reduced considerably too.
According to the Hipoteca blog, this is a consequence of poor banking results in general and an increase in interbank lending costs. While previously you may have been able to find a mortgage at rates of between 0.25% – 0.5% above the Euribor rate, it is now difficult to find rates of less than 1% over the benchmark rate. Accordingly you can expect to pay higher interest rates than say, even a year ago.
Also, the banks are requiring more guarantees as well as insisting that the mortgage applicant contracts other services from the bank such as life and property insurance. The interest rates demanded on second mortgage loans in Spain tend to be among the highest in the market while the period of time to pay off the loan and the loan-to-value ratio tend to be smaller. Most of the current offerings have a maximum repayment period of 25 years and a LTV o 65%-70%.

To find out how you can get access to the most economical divorce service currently available in Spain, go to: Divorce in Spain.

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