Rechargeable mortgages explained as a liquidity tool

A rechargeable mortgage, also known as a recharge mortgage, is a financial product that allows a borrower to recover part or all of the capital they have already amortized. This mechanism enables the borrower to increase the loan amount back to its original level.

For example, if an initial mortgage of 200,000 euros has a remaining balance of 150,000 euros, the borrower can recharge 50,000 euros to return the total loan to 200,000 euros. The primary objective of this feature is to obtain liquidity, functioning similarly to a personal loan but often with the benefit of lower interest rates.