There are many reasons why people want to get a second home in Spain. It might be the delightful weather, amazing beaches and access to incredible natural landscapes. If you already own property, one way of making this a reality is to refinance your mortgage. This allows for the equity you have built up in your primary home to be used to purchase a second property. In the past, getting a remortgage facility in Spain was quite difficult, but in recent years some banks have started to offer it as an option.
By remortgaging you are changing the conditions of your mortgage, which can include several aspects such as the amount, repayment period or interest rates. In Spain, this can be done in two ways. You can subrogate your mortgage, which is considered to be a more cost-effective way to better the conditions of the loan, or you can cancel your current mortgage with the lender and take out a new one. The latter can be more expensive as it is likely you will have to pay an early cancellation penalty. Whichever you choose will depend on the existing conditions governing your mortgage as well as your personal situation and needs.