A rechargeable mortgage allows for the recovery of part of the capital already repaid to the bank. To access it, one must meet requirements such as the loan signing date and pass a risk analysis.
A rechargeable mortgage allows customers to recover money they have already amortised, as explained by Deia based on data from industry experts. In other words, the holder can access the repaid capital without signing a new loan.
According to Laura Martínez, spokesperson for the comparison site iAhorro, the mechanism works like this: if a mortgage of €200,000 was taken out and €150,000 remains to be paid, €50,000 could be recharged, bringing the loan back to €200,000. Its usefulness, according to the same source, is to obtain liquidity while paying less interest than with a personal loan.
The cost difference is the main argument. According to iAhorro, mortgages have an interest rate of around 3%, while personal loans can range from 5% to 20%, depending on the institution, purpose, and customer profile.
Not all mortgage holders can access the recharge. As detailed by Fotocasa, the mortgage must have been contracted after 2007, as those signed before that date cannot opt for the recharge. Additionally, the initial amortisation period cannot be modified and the recharged money cannot exceed the amortised capital.
The bank must also pass a risk analysis before granting the recharge. Fotocasa warns that when requesting it, the payment increases because the customer has to repay more money in a shorter time frame.
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