Archive for the ‘Spanish Mortgages’ Category

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Polaris World Terrazas De La Torre

Tuesday, February 8th, 2011

Alter 4 years in the making Terazzas De La Torre the next stage of Polaris World has finally been completed.

Polaris are now writing to everyone giving them a March completion date.

For most units on this particular stage of the Polaris World developments a developer loan is not available for completion. For clients who have passed over 40% deposits so far a loan of 70% is required unless the buyer wishes to put more money into the development.

All banks are now linking to a maximum of purchase price or valuation whichever is the lower giving some concerns that if values have dropped even a 70% loan will not be sufficient.

Many buyers currently doing research are being told that 70% is not possible. This is not correct there remains at least one lender with loans at this level but choice will be limited.

For more information contact us today.

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Posted in Polaris World, Spanish Mortgages, Spanish Property | 1 Comment »

Santander Spanish Mortgage Changes

Tuesday, February 1st, 2011

Have you had Spanish mortgage offer changed by Santander?

Need an alternative Spanish mortgage due to Santander’s product changes?

From having one of the best mortgage products on the market in the last two weeks Santander have changed policy and now have the worst offering.

Santander have moved from 80% loan to value to 50%

Terms have reduced from 25 years to a rather obscure 13 years

Rates have risen from initially 1.35% above Euribor first to 1.75% above Euribor and now a whopping 3.9% above Euribor

For clients previously financially approved by Santander but without an offer it would appear these changes will affect them.

For those affected by Santander’s Spanish mortgage changes independent advice should be taken, as 70% at rates of 1.25% above Euribor is still available to non –residents buying in Spain. At lower loan to values it is possible to gain 1% above Euribor.

If you have been caught out by Santander’s Spanish mortgage product changes contact us now.

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Tags: Santander
Posted in Spanish Banks, Spanish Mortgages | No Comments »

Landmark Spanish Legal Ruling In Favour Of Mortgagee

Thursday, January 27th, 2011

On Wednesday the 26th of January Spain saw a landmark ruling in favour of a mortgagee over his bank.

The unnamed Spanish resident who handed back the keys to BBVA Bank when he was unable to maintain his mortgage payments has been dissolved of responsibility by the Judge for the outstanding amount between the loan and the amount the bank finally sold the property for after repossessing.

Whilst it has long been the case that if a bank agrees to take property back any future responsibility from the borrower is removed; in cases where the keys are handed back and the bank has not agreed to take property back; a continuing lifetime responsibility to pay back any difference exists.

The legal deed signed by borrowers stipulates they are giving both the property as security and a personal guarantee.

In an American style ruling the Judge stated that it was morally wrong for banks who irresponsibly lent during boom times; and caused the financial issues now affecting Spain and its unemployment levels; to be able to continue to pursue an individual for their lifetime and that the bank took security of a property this being the difference between granting a mortgage and granting a  personal loan.

It will be interesting to see if this ruling speeds up the mortgage reform which many politicians and the public have been pushing for and what affect it has on banks desire to lend.

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Posted in Spanish Banks, Spanish Economy, Spanish Mortgages, Spanish Property | No Comments »

Spanish Banks Change Margins for Spanish Mortgages

Tuesday, January 25th, 2011

Changes in margins for Spanish Mortgages

As banks in Spain continue to find the raising of funds difficult and costly so their requirement to widen margins has continued.

January so far has seen many banks increase margins above Euribor for their variable products and increase their fixed rate offerings to reflect the tough market conditions in the wholesale money markets.

Sol Bank have moved their general terms from 1% above Euribor to 1.25%

Barclays have pulled their 3 year and 5 year fixed rates and replaced them with 2.99% for 3 years and 3.50% for 5 years. The rates changed after fixed rate expires have also gone up now being 0.69% and 0.59% respectively. Variable rate has been held at 1% above Euribor.

Lloyds Spain who increased margins quite heavily in December have made no further changes in January.

Deutsche Bank has non-resident loans with linked products at 1.15% above Euribor

Other banks; who include those listed below; now regularly quote terms with margin above Euribor exceeding 2%. One of Santander’s offerings actually has a whopping rate of 3.5% above Euribor. These kind of rates make Sol Bank, Barclays, DB and Lloyds rates the most competitive in the market despite the recent increases.

  • La Caxia
  • Santander
  • Caja Sur
  • Bankinter
  • BBVA

On a positive note for the right applicants; at the right loan to values; funding is still flowing and relatively easy to obtain. New activity for purchases has been remarkably buoyant in December and January.

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Posted in Spanish Banks, Spanish Economy, Spanish Mortgages | No Comments »

Beware Of Life Policies Linked To Spanish Mortgages

Tuesday, January 25th, 2011

Beware of what you are signing!

As banks in Spain continue to struggle to make Spanish Mortgages profitable, so the requirement for linked products has increased.

For many lenders this requirement can only be enforced for the first year and cancelled by the client for subsequent years as the product is not written into the Mortgage Deed. The reason it is not written into deed is because it is not legal to link compulsory products unless an enhanced rate has been given to the standard variable.

If an enhanced rate is given; in the deed to will stipulate the rate and what it is linked to; but will also clearly define what happens to rate if linked products are cancelled.

To overcome the fact that the banks cannot in general write life cover into the deeds and to avoid having clients drop the requirement for year two many banks are now only offering a up front lump sum life cover premium which means the policy is paid for at inception of loan not regular premiums that can be stopped at a future date.

Clients should be very careful to ensure they know what each bank is applying as compulsory to the loan as it is often not made clear to the client at application and if the Lawyer is signing as power of attorney the small print in the mortgage deed may not be fully explained.

For expert advice and to ensure a Spanish Mortgage is only signed in full knowledge of exactly what is incorporated in the deed and the long-term implications buyers in Spain should always use an independent and experienced Spanish mortgage broker.

Posted in Spanish Banks, Spanish Mortgages | No Comments »

Eurobor set to rise? Now is the time to fix your Spanish Mortgage Rate.

Tuesday, November 30th, 2010

Euribor, the index used by most Spanish Banks and to which variable loans are linked, are almost certain to rise as funding from the Central European bank is pulled back and more and more banks rely on market funding to obtain liquidity.

The three-month Euribor, which is the main indicator of market expectations, has risen 20% since September; whilst these increases seem to have stabilised the general view is that both 3 month and other corresponding Euribors will continue to edge up.

Until there is a more settled economic outlook for Europe and the cost of buying funds reduces, due to growing confidence in each other, the Interbank rates are likely to continue to reflect an upward curve.

For buyers in Spain who require a Spanish mortgage this could be a good time to take a medium term fixed rate with 3 to 5 years seeming to be the best bets.

Most banks have increased their fixed rates for the month of December and some now look decidedly unattractive; there however remains some good deals on offer, subject to perhaps compromising on loan to values and the requirement to take other compulsory products.

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Posted in Spanish Banks, Spanish Economy, Spanish Mortgages | No Comments »

Spanish Mortgage Lenders Insisiting On Compulsory Life Cover

Wednesday, November 17th, 2010

The issue of banks in Spain insisting on compulsory life cover being included on a Spanish Mortgages continues to cause considerable concern.

This activity was stamped out by the FSA in UK some years ago.

It is not that it may possibly be a product it would sensible for a client to take if they do not have sufficient life cover in place; but the fact the Spanish Banks are restricting the policy to theirs alone and taking no account of the suitability or requirement for the client to have life cover that is concerning us all.

It is no longer possible to just look at rates when assessing a Spanish loan; as unnecessary life cover could increase overall costs even if rate offered appears to be low.

Each Spanish bank also has a different way of applying the life cover. Some take regular premiums which will of course increase as client ages and some take a lump sum out and add it to the mortgage capital borrowed so client pays interest on the amount each month as well as clearing the capital. Again, if a client accesses this type of offering the cost of the life will increase if rates increase.

The Spanish banks are far from transparent about the requirement and many clients taking a loan direct are blissfully unaware until completion that it will be the case.

On most occasions, the requirement is now being embedded in the mortgage deed so it cannot be cancelled at a later date. If it is added to the mortgage loan it becomes a capital amount outstanding and should it not be paid would put client into arrears and facing possible repossession.

Residents of Spain face even worse extra costs as they have everything added as compulsory not just life cover.

Only one bank Lloyds do not insists on life as compulsory preferring to act as banks do in the UK and offering the facility for those that require it without making it a pre-requisite of loan. Barclays who are just about to announce huge profits conversely have completely forgotten their UK roots and are looking to try and find a way of adding payment protection as well compulsory life cover to all non-resident Spanish mortgage applications.

It is unclear how under EEC law this activity would be viewed and the Spanish banks have their difficulties, as currently they cannot make money out of lending alone because of cost of funds. It would however at the very least be helpful if some governance was applied as to what the banks can reasonably do, a requirement to be transparent and visible and actually have a measure that shows what the impact of their life costs and overall impact in comparison to other lenders and products.

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Tags: Life Cover
Posted in International Mortgages, Spanish Banks, Spanish Mortgages | No Comments »

Great New Spanish Mortgage Product Available

Friday, October 15th, 2010

One of the major banks in Spain; Barclays ES; today released a new and very attractive 3-year fixed rate of 2.95% followed by a very attractive variable after fixed rate finishes of 0.35% above 12 month Euribor.

This compliments their current 5 year fixed rate of 4.20% and provides very good value for money for non resident buyers. Life cover must be taken with Barclays as compulsory; but given all banks except Lloyds are also making this conditional of a loan in Spain the product is extremely competitive.

With loan to values of up to 65%; higher than most non resident offerings; Barclays are looking to attract the more affluent holiday home buyers or permanent residence owners.

Debt to income ratios are lower than for most banks and clients must earn minimum in sterling of the equivalent of € 3.000 net per month. Only two incomes as a maximum can be assessed and the underwriting criteria’s are tough. For the right clients however Barclays are providing very competitive spanish mortgages.

To check qualification International Mortgage Solutions can be contacted on 0034 952 45 97 45 or email advice@imsmortgages.com

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Posted in Spanish Banks, Spanish Mortgages, Spanish Property | No Comments »

Spanish mortgages 24 hour Approval in Principle

Friday, September 17th, 2010

When buying in Spain having a financial mortgage approval will greatly enhance your ability to negotiate on price and ensure you know your exact maximum budget, the costs you must consider and ongoing monthly commitment your purchase will entail.

Most buyers will incur costs of flying to Spain and accommodation whilst there when searching for a property. Incurring unnecessary expenditure just to find you are unsure of what your budget could be, unable to make an offer because you are unsure of what you can borrow or are unaware of buying and mortgage costs can be avoided by obtaining before looking for a property a Spanish mortgage financial approval.

A Spanish Mortgage financial approval will confirm your ability to raise the necessary funds, outline terms of the product and ensure you can be clear of exact budget. It will put you in a position to inform any seller your finances are in place making you a more attractive buyer than one who does not have finances secured.

With loans more difficult to obtain than a few years ago having a financial approval will ensure you can buy the best properties at the best possible price and move quickly to secure it.

For a written 24-hour approval in principle complete this form

Posted in Spanish Banks, Spanish Mortgages, Spanish Property | No Comments »

International Mortgage Solutions launches Spanish Mortgage information video

Friday, September 17th, 2010

Obtaining information about Spanish Mortgages before making a commitment has in the past meant researching across a number of web pages, information sites and banks.

Often each provider of information was unable to give a full overview of all the considerations that a potential buyer should consider.

To help buyers understand fully in a one stop shop what they can expect and should consider when buying in Spain and requiring finance International Mortgage Solutions have produced and launched a clear, informative and accurate video which buyers can watch to quickly and easily ensure they have all the relevant information they need.

Unique in the market of Spanish Mortgages the video covers

  • Criteria’s applied by banks
  • General costs
  • General rate margins
  • What to expect from the loan and loan application process
  • How loans are legally secured in Spain
  • How to understand what you are signing for
  • What the implications are back in country of residency of taking a Spanish loan
  • Who IMS are and how they operate

Posted in Spanish Mortgages | No Comments »

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