# Taking over somebody's Spainish mortgage



## baggy46a (Oct 6, 2013)

I know this is probably a big ask but I cannot seem to find enough info on the net and nobody can really explain this to me.

Just wondered what the deal is with taking over an outstanding mortgage was in Spain, it seems very complex and a bit scary... I hear people saying stay away from this but I just wondered if anyone can explain the whole process - or if anyone has done this or any pro's cons's

all info would be great and as much detail as possible / peoples experiences would be very worthwhile too.


Thanks


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## jojo (Sep 20, 2007)

I've never heard of this in either Spain or the UK?? Other than to take out your own mortgage and use it to pay for the property and the mortgage on it

Jo xxx


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## xabiaxica (Jun 23, 2009)

jojo said:


> I've never heard of this in either Spain or the UK?? Other than to take out your own mortgage and use it to pay for the property and the mortgage on it
> 
> Jo xxx


I do know that it is, or at least was, very common here - but more than that I don't know, having no experience of it myself


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## Chopera (Apr 22, 2013)

Yes it happens quite often in Spain, and I suspect it's quite a good option these days since the mortgage rates at the moment are quite high relative to the euribor. You might even save on certain costs relating to taking out the mortgage. I can't remember the details but in Spain the mortgage is tied to the property rather than the owner (hence you have to check when you buy a property that it hasn't got any outstanding mortgages against it). This makes it quite straight forward to switch the mortgage to the new owner when the house changes hands.


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## 213979 (Apr 11, 2013)

Chopera said:


> Yes it happens quite often in Spain, *and I suspect it's quite a good option these days since the mortgage rates at the moment are quite high relative to the euribor. You might even save on certain costs* relating to taking out the mortgage. I can't remember the details but in Spain the mortgage is tied to the property rather than the owner (hence you have to check when you buy a property that it hasn't got any outstanding mortgages against it). This makes it quite straight forward to switch the mortgage to the new owner when the house changes hands.


Yes and yes. 
We bought a new property and took over the construction company's mortgage on the place. We have an excellent rate and we *did* save on costs, especially since the bank didn't have to come and _tasar_/appraise the property. 

We had no problems, but then again we bought from the construction company.


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## Pazcat (Mar 24, 2010)

This could be an interesting thread and it's an option that has been raised to us which we need to investigate more when the week starts.

Would you still be required to place a deposit on the mortgage considering the previous owner has done all of that, as far as I can tell it's a straightforward switch.
What about renegotiating the terms?
Clearly the bank would need to do it's checks but it hasn't been an issue so far.
This seems like it could have a number of advantages.


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## 213979 (Apr 11, 2013)

Pazcat said:


> This could be an interesting thread and it's an option that has been raised to us which we need to investigate more when the week starts.
> 
> Would you still be required to place a deposit on the mortgage considering the previous owner has done all of that, as far as I can tell it's a straightforward switch.


Yes. We had to pay a certain percentage of the property. 



> What about renegotiating the terms?


 The terms were already way better than what you can get now, so we d¡dn't do that. 



> Clearly the bank would need to do it's checks but it hasn't been an issue so far.
> This seems like it could have a number of advantages.


I'm happy with how the process went. We got a much better deal than we could now, AND the bank was dying to get the loan into the hands of someone who would pay it.


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## Pazcat (Mar 24, 2010)

elenetxu said:


> Yes. We had to pay a certain percentage of the property.


That's something I'd be willing to test at the least, some banks are offering up to 100% mortgage if you go with one of their properties so depending on the bank it is at least worth a shot seeing as the mortgage is already in place on the property.
Never know if you never ask.



elenetxu said:


> The terms were already way better than what you can get now, so we d¡dn't do that.


Well without knowing the exact terms yet anything is possible but I would expect that we don't want to renegotiate any rates or anything but more so the payments, in other words pay it off quicker.

It may all be for nothing anyway, I'm not going to get hung up on the idea just yet.


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## Chopera (Apr 22, 2013)

Pazcat said:


> That's something I'd be willing to test at the least, some banks are offering up to 100% mortgage if you go with one of their properties so depending on the bank it is at least worth a shot seeing as the mortgage is already in place on the property.
> Never know if you never ask.
> 
> 
> ...


You can usually overpay the mortgage anyway. They normally give the option of reducing the term or reducing the monthly payment when they recalculate it. They might charge you a bit for paying off a huge amount at once, say if you pay off more than 20%, but that's about it. As has been suggested above, the mortgages on offer with new properties usually are the same mortgages taken out by the constructor to finance the construction - they simply transfer the mortgage to the buyer - so it is extremely common in practice.

On the whole banks only tend to offer 100% mortgages on properties they own, otherwise they might offer 100% finance on a very cheap property that they value higher (so it's less than 100% of their valuation but it works out as 100% of whatever you are paying for it).


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