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                      What type of mortgage is right for me ?

Actually, here at amortgageinspain we don't tend to recommend the "triple lutz" mortgage these days. A few years ago in Spain you could have a choice of repayment, repayment, and, er, repayment mortgages. Some choice.

Things have improved however, and these days there are a variety of options to suit most requirements. Some of the choices are listed below, and if you have any questions please give us a call or send an email, and one of our consultants will explain things without making your head explode!

Interest only mortgage

Traditionally in the UK, interest-only mortgages were commonly used in conjunction with a repayment vehicle such as an endowment. More recently they have tended to be used more for investments or second-homes, where ultimate repayment of the initial capital is not vital, as the owner will have one or more other properties anyway.

So, it's a pretty straightforward concept. You borrow an initial amount of capital for your purchase or remortgage. During the course of the mortgage term you will be charged interest on the capital amount, at the prevailing rate applied by your lender. At the end of the mortgage term you will still owe the bank the whole amount of initial capital, as you won't have repaid any of it, as you have paid the "interest-only". Of course, hopefully because of the time-value of money, and the long term capital appreciation of property, the amount that you owe at the end of, say, 10 or 20 years, will not seem quite so much compared to the market value of your property. An interest-only mortgage in Spain will have the lowest possible monthly outlay for your investment or holiday home.