Most of the Spanish banks are reluctant to give interest only mortgages. And when they do it is usually just for 1 year.
Both Barclays and Lloyds (ex Halifax) will offer IO mortgages but the cost of swapping will be a few thousand euro unless you can get them to do it for free - which is highly unlikely in the currect economic climate.
Fees are likely to include:
a) cash-in clause on your current mortgage (anything from 0.5 to 1.5% of loan)
b) solicitors fee
c) valuation fees
d) bank handling fee.
Both banks were only offering 60% mortgage to valuation on a maximum 5 year IO period about 12months ago - and Lloyds have certainly not been doing a free transfer service for a while, although as the interest rate fallen consistently on the Eurobor for the last 5 months they may now have opened theri doors again. The 60% mortgage/valuation may mean that you may not even be able to cover your existing mortgage given that house valuations have fallen drastically in the last 2 years.
It's expensive to change your mortgage unless you can find someone to pay the fees so my advice woul be think carefully before you take the leap.
This message was last edited by pommers on 18/05/2012.
This message was last edited by pommers on 18/05/2012.