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Reverse Mortgage
Convert part of the value of your home into monthly income that you will not need to pay back in your lifetime.
- Start enjoying the value of your home today.
What does the Santander MAPFRE Reverse Mortgage offer?
The Santander MAPFRE Reverse Mortgage1is a mortgage loan that enables over-65s to receive, using their home as security, monthly payments to top up their income for a fixed term with no additional fees.
Their heirs will have a certain period of time to repay the principal and interest, with the option of repaying the total amount by selling the property.
How much money can I earn?
The money you will receive will depend mainly on your age and the value of your home. The higher your age and the value of your home, the more you can earn. You can request a personalised simulation at any Santander branch.
For how long will I receive payments?
The monthly payments you will receive for the Reverse Mortgage have a limited duration. However, if you prefer, you can receive payments for the rest of your life, by arranging the life annuity insurance policy2, which you will start to pay when the amounts of the Reverse Mortgage have been fully paid up.
Who can apply?
Applicant's profile
- People over 65.
- They must be the homeowners.
- Homeowners.
- No other people living in the property, apart from the owners.
Other terms and conditions
- No other mortgages or loans on the property.
- The property must be their main residence.
- Homeowners.
- The value of the property must be above €150,000.
What are the advantages of the Reverse Mortgage?
- Tax benefits3
Payments received from the Reverse Mortgage are not subject to income tax, in accordance with the current tax regulations.
- You keep your home
You will still be the owner of your home.
- Value for your heirs
Your will get the remaining value of the house after the debt has been paid off. If the sale amount is insufficient, the bank may go after the mortgaged property or assets included in the inheritance.
How can my heirs pay for the debt?
After the passing of the mortgagors, the heirs will be contacted to help them take a decision:
- Sell the house and pay off the loan:Any remaining amounts after selling the property and paying off the debt will be paid to the heirs.
- Keep the home: The heirs may keep the home by paying off the Reverse Mortgage loan. They can do so with a normal mortgage loan or with their own funds.
- Renounce the inheritance: The bank may start the corresponding court and out-of-court proceedings to recover the debt.
After the passing of the mortgagors, the heirs will have nine months without interest, to pay off the debt.
FAQs about the reverse mortgage
The money you will receive will depend mainly on your age and the value of your home: the higher both figures, the more you can receive.
No, you can only apply if it is your habitual residence.
With a Reverse Mortgage, your home is only used as security, but at no stage do you lose ownership. The costs for maintaining your property will be your responsibility without any change of ownership, just like with any other mortgage loan.
The amounts obtained through a Reverse Mortgage (up to life expectancy) are not subject to personal income tax as they originate from a loan or credit, in accordance with the current tax regulations.
The law that regulates this product has provided for independent advisory services to ensure that both you and your family know how the product works and to verify that this product is suitable for your requirements.
No. The monthly amounts received through Reverse Mortgage will remain the same until the end of the mortgage. Otherwise, the CPI would have a direct impact on the final debt that the heirs would have to pay upon death of the owners, and could cause the debt to increase significantly.
It is very rare and highly unlikely that this situation will arise, since the product is designed with enough of a margin for your heirs to comfortably pay off the debt. Even if this does happen, the debt will always be limited to the assets of the estate itself, the recovery of the debt is limited to the assets comprising the inheritance itself.
An appraisal is carried out by an appraisal company approved by the Bank of Spain. The appraisal may be provided, but if you do not know any appraisers, we can help you arrange one.
Yes, early repayment is allowed at any time. If this happens, a fee of 0.5% will be charged if the repayment occurs within the first five years of the term of the loan, or of 0.25% if the repayment occurs within or after the sixth year of the term of the loan. The fee is only applied to the amount repaid.
Documents will be reviewed annually with the borrowers and we will request the following documents:
- Certificate of life: This document declares that a person is alive and states their marital status as at the date of issue. This document can be obtained from the applicable local registry office. The certificate of life must be checked at least once a year.
- Home insurance: Proof of payment of fire insurance, insurance for other property damage or home insurance.
- Proof that the borrowers are up-to-date with payments with regard to housing expenses: Payment of the local property tax and payment of the community of owners fees, if required.
Una vez que todos los titulares fallezcan, los herederos dispondrán de 9 meses sin intereses.
Una vez finalizado el periodo fijado tras el fallecimiento de los titulares sin haberse cancelado el capital y los intereses generados, comenzará el cobro de intereses de demora iniciándose en su caso el correspondiente procedimiento de ejecución hipotecaria sobre la vivienda.
Yes, to do this they would have to pay off the Reverse Mortgage debt by taking out a normal mortgage with any entity or by paying off the debt with their own funds.
1.Product arranged with Santander MAPFRE Hipoteca Inversa E.F.C., S.A. Tax ID code A09641549 and marketed by Banco Santander, S.A. Financiación, subject to approval of the lending entity. For more information about the product and its terms and conditions, visit the website www.santandermapfrehipotecainversa.es or any Banco Santander branch. The customer has the right to request independent advice.
2. MAPFRE VIDA, S.A. de Seguros y Reaseguros life insurance policy brokered by Santander Mediación Operador de Banca-Seguros Vinculado, S.A, ("Santander Mediación"), through its distribution network with Banco Santander, S.A., under the agency agreement it has signed with the above insurance company. Santander Mediación is a company registered in the Register of the Directorate General of Insurance and Pension Funds, with no. OV-0042, and has Third-Party Liability and Financial Capacity Insurance, according to prevailing legislation. For other insurance companies with which Santander Mediación has an agency agreement in place for the distribution of insurance products, please visit www.santandermediacionobsv.com.
For more information about the characteristics and risks of the insurance policy, please refer to the key information document at www.mapfre.es.
If the life annuity insurance policy premium is financed as part of the mortgage, interest will be generated on the premium.The life annuity insurance policy is subject to taxes according to the specific regulations of each Autonomous Community.
3. Likewise, this policy receives the general tax treatment and may be subject to legal changes.