Paying off my spanish mortgage

Hi

Can anyone advise me on this topic???

I came into some cash and want to pay off my spanish mortgage in full but this will incur some early redemption fees that I do not want to pay. Can I pay most of it off but leave a small outstanding balance so the mortgage account is still live - or is it better just to pay it all and pay the fees?

Many thanks if anyone can assist

Troyally

You wont pay any penalty if you leave a small amount, it wont benefit you to pay it all off  if you are taxed in Spain

It depends on the lender and the original Mortgage Deed - some lenders have a facility for making overpayment whereby no penalty incurred but others not so. Depending on how long you have had the mortgage the redemption penalty would likely be no more than 1% anyway so assuming a loan of 100,000€ the penalty would be 1,000€ - while it is not an insignificant sum in perspective it is fairly small.

Check your mortgage deed and see what terms you have - failing that ask the bank themselves.