Whether you’re looking to release equity, switch to a better rate, or finance a property you originally bought in cash, remortgaging as a non-resident in Spain follows a similar process to an initial mortgage application — with a few extra steps.
Common Reasons Non-Residents Remortgage
- Switching rate type — moving from variable to fixed (or vice versa) if the rate environment has shifted since your original mortgage
- Releasing equity — borrowing against increased property value for renovation, investment, or other purposes
- Financing a cash purchase after the fact — some buyers pay cash initially for speed, then remortgage once the purchase is complete
- Switching lenders for a better overall rate or terms than your current bank offers
The Process
- Get a fresh property valuation (tasación), since remortgage terms are based on current value, not your original purchase price
- Submit updated income and financial documentation, similar to the original application
- Compare offers if switching lenders, or negotiate directly if staying with your current bank
- Sign the new mortgage deed at a notary, which formally replaces or modifies the existing one
Costs to Expect
- New valuation fee: €250–600 depending on property size and location
- Notary and registry fees for the new or modified deed: typically €500–1,500
- Early repayment penalty on your existing mortgage, if switching lenders before any penalty-free window expires — check your original contract’s terms
- Arrangement fees with the new lender, if applicable
Is Switching Lenders Worth the Cost?
Calculate the total switching cost against the savings from the improved rate over your expected remaining time with the property. For a meaningful rate improvement (typically 0.5 percentage points or more) on a loan with several years remaining, switching often pays for itself within 1–3 years — but run the specific numbers for your situation rather than assuming.
Frequently Asked Questions
Does my LTV limit change if I remortgage years later?
The 60–70% non-resident LTV ceiling generally still applies to the new valuation, though a property that’s appreciated significantly can still allow meaningful equity release within that limit.
Can I remortgage to pay off the loan faster rather than release equity?
Yes, some non-residents remortgage specifically to shorten their term or reduce their rate, not to borrow more — the process is the same regardless of your goal.
Do I need to update my residency or tax status to remortgage?
No, remortgaging as a non-resident doesn’t require any change in residency status — your non-resident classification simply continues to apply to the new mortgage terms.