Yes, you read right.  You could have your very own Luxury Apartment in Mallorca and Pay absolutely NOTHING on your mortgage for the first 3 years.

Offers like this usually sound to good to be true, and normally, I would agree with you.  Don’t touch with a very (very) long bargepole springs to mind!  However, in this particular case, this offer very much stands up to scrutiny.

Let me give you the background and then you can decide for yourself.

There is a particular Spanish bank which, as part of its mortgage portfolio offers a mortgage where you pay nothing for the first 3 years, that is to say neither interest nor capital and the first 3 years interest is not accumulated.  You simply start paying in the fourth year as if you had bought the property then.

Great, except for the BUT and it is a significant BUT.  The offer is only applicable to properties that are owned by the bank, that is to say, those properties that have been repossessed.  Now lets face it, correct me if I’m wrong, but people such as yourself, would not normally consider a 3rd floor, no lift, no parking, inner city Palma apartment on the C/ Manacar an ideal “Holiday Home in the Sun”.

And yet, this is what most of these properties are (and I say most because I do know of 1 which is not .. it is in fact a front line golf villa!!!).  As nearly all second home / holiday home property owners are managing to keep up with mortgage payments, not least by use of rental income that residential owners cannot get (as it is a bit difficult to rent the property out when your living in it!), the kind of property you are after is not normally on the banks portfolio.

Now, in parallel to this there is a well known builder / promoter of luxury apartments in Mallorca that, as with many others, has taken a substantial hit with the current economic downturn.  In fact ,during the height of the EURIBOR rise to its dizzying 5% levels, they actually had to stop building because of the strain of having to pay the contractors as well as the interest payments which had effectively doubled within a year.

When interest rates dropped back to their current levels, they managed to finish off the build and only missed the completion date by just over a month.  Meantime however, in order to achieve this, they did have to refinance the build with the bank, and yes, you guessed it, they did this with the very same bank that offers the 3 year mortgage free deal.

Ah, you say, refinanced, not repossessed: these properties are not owned by the bank and therefore, they do not fall within the terms of the mortgage that is being offered.  And you are right.  BUT, and yes, there is always a BUT, as they say: an agreement has been reached.

In order to facilitate the sales of these apartments, the bank and the promoter have negotiated to offer the properties through the banks resale programme, that way bringing them into the scope of the FREE mortgage offering.  The end result is, a luxury apartment in Mallorca without any capital or interest mortgage payments on your Mortgage for the first three years.

Not satisfied with not paying anything on your Mortgage for three years?

Yes, Tell me how I can Pay Nothing on My Mortgage for 3 years
AND save 25,000€ When I Buy