I have had a quotation from Bankinter for a small mortgage but they want me to have their life assurance which I have no problem with but they also want me to have 'Absolute & Permanent Disability Cover' the premiums are very high and its my opinion that they are 'Loading' a basic death policy?
Any comments welcomed before I send a reply to them.

We had problems when taking out a loan with Unicaja and had to take out life insurance. Its a way for them to make some more money.

Suggest you shop around or play hard ball with them - they will sell all they can especially to foreigners. Sad but true and probably no different to the UK. remember a mortgage (for residents) is tax deductable if if it for your main residence. But this is changing soon.

Hi, can you say some more about the tax reduction for residents?

Remember the good old days in the UK when you got MIRAS - tax relief on mortgages well that still exists in Spain. It is for fiscal residents ie you declare for tax in Spain - there are terms and conditions - I think it is up to 9000€ interest, must be for main residence (not buy to let) and it is being stopped soon - ask a tax adviser or your bank for more.