Redemption on a Spanish mortgage

Can you repay on a mortgage in Spain?

In Spain, they don't know repayment-free mortgages. Spanish banks only work with annuity mortgages. As a result, you pay a fixed amount of repayment and interest per month for a mortgage. There are costs attached to paying off your Spanish mortgage.

Early repayment on your mortgage

Penalty-free repayment is not allowed by default at a Spanish bank. You pay a one-off fee (penalty fee) when you want to repay an extra amount in addition to your normal monthly charge. The penalty fee depends on your interest rate choice (fixed or variable). Keep in mind the following percentages:

• 2% penalty fee at fixed rate in first 10 years. Thereafter 1.5% penalty
• 0.25% penalty fee for floating rate in the first 3-5 years. After that, penalty-free repayment is no longer possible.

In an example, you can translate it as follows: if you repay an additional €10,000, you will pay €200 in fees to the bank on this amount with a fixed interest rate and €25 with a variable interest rate. There is no maximum for the amount to be repaid per year. The conditions and rules for repaying your Spanish mortgage may differ from one Spanish bank to another.