Mortgage to release funds

We need a mortgage to release funds from our Spanish house to pay off some UK debt. I have been told that Spanish mortgage companies will not give you a mortgage for this purpose. Does anyone know who will? We have been offered a 'black market' loan but the interest is far too high.

email sharon@tmasspain.com

It sounds like you are talking about a Lifetime Loan / Equity Release product.

There are only a few specialised lenders that are offering this kind of scheme at the moment and they have certain criteria that need to be met before they will approve you  - such as your age, the amount of equity in your home ( usually needs to be a min of 50% ) and the value of your home. As you may expect, there are also cerain charges that are applicable.

** EDITED - Self promtion **

For an honest discussion I would recommend Patrick Robinson at Marbella Mortgages.

You need to be very careful when it comes to lifetime loans and equity release - ie read the small print at least twice and then again for good measure!

Hi Cazzy there was a time when this could be done. Technically under Spanish Mortgage Law the only reason for equity release in Spain is for additional property purchase (in Spain) or reform of an existing property. IE the money is not supposed to leave Spain. There have been banks that were willing to sweep this under the carpet and ignore destination of funds but it has become significantly harder to achieve. In fact the last time we arranged something for a client it was for UK home improvements and the client had to provide plans, blueprints and written tenders etc - even then it was not easy.

Black Market loans - I assume you mean a "loan shark" - be very very careful - I am aware of some that do this in Spain. Have never ever promoted or used them - it is done under the guise of Bridging Finance but they are no better than loan sharks - AVOID LIKE THE PLAGUE! I dont know many that have used them but the ones I do know have all ended in tears.

I agree -

There is a lender that will allow equity release for home improvements (on property in Spain) or for buying another property in Spain or the UK but unfortunately not for debt consolidation in the UK.

Thanks fpegman for your posting,