Archive for the ‘Spanish Mortgages’ Category

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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

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 »

Euribor Rates on the Rise for Spanish Mortgages

Wednesday, September 8th, 2010

August saw the first; all be it small; Euribor ( European Interbank offered rates) rise for 12 months.

The level of Euribor rates which has been at a historical low for many months is predicted to rise by about 1% over the next year. It was unrealistic to believe the rates could remain as low as they have been and increases should be gradual.

In itself, a 1% rise may not cause existing borrowers or new borrowers too many problems increasing payments by € 50 per month for every 100k borrowed on a 20-year repayment loan. Given however the fragility of the Spanish Economy and the high existing rate of defaults the Spanish Banks are experiencing it must be hoped that increases do not exceed the anticipated 1% increase and that Euribor base rates then level out at around 2.40% rather than continue to climb.

Given the trend is however for rate rises when looking for a loan considering a fixed rate above current variables could be a good option to hedge against where rates will finally peak.

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

Lloyds and Halifax Spain complete merger

Wednesday, September 8th, 2010

Ahead of its UK counterparts from October the 1st the two banking arms in Spain Lloyds and Halifax will come together as one. From October 25th all Halifax branches will be re-branded to Lloyds.

At present there still remains a few differences between the two in lending criteria.

Lloyds minimum loan size is € 100k whereas Halifax is € 50k. Lloyds only offer 12-month Euribor trackers whereas Halifax offer 1 month and 12 month.

Debt to income ratios are 50% at Lloyds but they use an inflated interest rate of 5% to calculate this and Halifax is 35% using the current rates of around 2.5%.

For any clients with applications currently being processed by Halifax their broker or the client themselves should push for an offer quickly to make sure their terms are honoured as it would seem far more likely criteria will moved totally to the Lloyds current stance rather than an adaptation of the two.

Given the banking groups appetite to lend in Spain for the foreseeable future is very low it is unlikely criteria will be relaxed to meet the more accessible Halifax current risk profile.

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Improving Terms For Non Resident Spanish Mortgages

Tuesday, July 20th, 2010

Having almost removed themselves entirely from the non resident market by lowering loan to values to 50% and increasing rates two years ago one Spanish Bank has recently changed its product portfolio to attract new business.

By far the best of their new products is 5-year fix at 3.20%.

With current variable rates averaging around 2.5% to 2.75% but with Euribors now increasing slightly each month; and a market view that without doubt in the next 18 months the ECB base rate and Euribors will increase steadily; this would seem to be fantastic value for money over a 5 year period and a good low rate hedge against rate increases. After the fixed rate period the variable rate will be 0.49% above Euribor; with most banks currently charging between 1.25% to 2% above Euribor this a very low and unlikely to be beaten in the longer term.

The bank has also raised loan to values to 65% making it only one of two banks above 60%.

Interest only up to two years on a case-by-case basis can be made available although the banks strong preference is a repayment mortgage and it is more likely to be approved on a repayment basis.

Minimum valuation of property must be 170k and debt to income ratios cannot exceed 30% but for clients who qualify this market-leading product provides good value in an otherwise difficult market.

For further information contact us

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Spanish Mortgages For Expats

Wednesday, July 7th, 2010

Due to the ongoing economic climate worldwide buying a high quality value for money property in Spain has become more achievable than a few years ago.

Many Expats working places like the Middle East or Africa see Spain as an ideal half way house for vacations and a final place to settle when current contracts or early retirement beckons.

It is easy to see why many people who have lived for years as Expats find it difficult to accept when returning to Western Europe cold and pricey UK and look for a more amenable alternative to return to.

Spain with its great climate, beaches, fantastic countryside and a more laid back way of life with all the amenities and infrastructure expected from a civilized country provides an ideal base.

Not too far away from family back in UK but different enough to make the move from United Arab Emirates or Africa not quite as stark as being thrown back into the UK way of living.

Because many Expats have long-term financial plans in place; often whilst timing for finding and buying that ideal Spanish home is excellent they may require in the shorter term funding to bring purchase decisions forward. Because most of the countries Expats work in are tax-free often Expats find banks in Spain difficult to work with or obtain lending from as they cannot provide the normal standard documents required.

IMS have many years experience in handling this type of application, know all the banks that will provide loans to Expats and have all the up to date information required to ensure the best possible overall terms tailored to meet the clients objectives are explained and sourced.

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Low Rate Spanish Mortgages Changes Name

Tuesday, May 25th, 2010

Low rate Spanish mortgages offering currency mortgages and apparently bucking all the trends in Spain by completing on an enormous amount of mortgages in 2009 making them a very successful company have for some reason despite this success decided to completely change their name.

Last year they state they completed on 700 mortgages! This is an astonishing amount of business. If each loan was an average of 150k and they earned 0.50% from the lender “Dominion Credit” this would have brought in an income of € 750k . Not bad for a two-person business giving as a pro rata cost against income BP a run for its money.

If I had a company as successful as they have pertained to be the last thing I would do in current environment is completely change my name. It is a conundrum as usually only companies who have damaged their brand by poor service or failure feel the need to change their name.

The new website called “Ubiquitous Mortgages” is pretty much a rewrite of the old website however, the spot the ball competition at € 25 an entry no longer exists under the new brand.

The old saying if it seems to good to be true does not apparently apply or does it!!!!

See latest feedback on Low Rate Spanish Mortgages below .
The comments from Clive Ballard are posted below.

As you say, Dominion Credit and Finance website is new, The name was only registered Jan/Feb 2009. Low Rate Spanish Mortgages were advertising the Yen mortgages in Oct 2008. The DC&F website, like the LRSM website is not very professional for the nature of what it is supposed to sell, and the office in Singapore is not an office but only a phone answering service. Like yourself I could not find any references to Henry Braithwaite in the banking world. I phoned/e-mailed him on a number of occasions in March 2009 requesting information on agents, other than LRSM for these mortgages.
I got no responce to the messages left.
Since DC&F were not contactable, and had no website until Jan 2009, I wonder how LRSM were able to offer their mortgages in Oct 2008, and purchased the domain name in May 2008.

Low Rate Spanish Mortgages charge a non refundable, 500 € to apply for a Yen mortgage.
I applied for a mortgage from them in Jan 2009, when there office was in Valencier. Approximatly 6 weeks later when I chased the mortgage, they had apparently moved to Bilbao, though were working through a UK phone answering service. When they rang back, I was told the morgage was not granted, due to the financial situation, but if I liked to apply again in 3 months (and pay another 500€) the situation might have changed.
It seems to me that the only ones making money out of this, are “Low Rate Spanish Mortgages”, a 1/2 man run business who as well as running lotteries*, also run a dating site under their other company name of Marverose S.L
They also have interests in an Estate Agents (wherepropertysells.com), though I think this may now, have closed.
N.B. The original UK company named Dominion Credit and Finance went bust in the 1990′ies.

*IMS would like to state there is no evidence that Mark Foreman runs lotteries which would which under the gaming act would be a criminal offence. A lottery has very different regulations to a competition.
Brian McKenzie says:
January 25, 2010 at 12:17 pm

Hi.
Similar story as clive only this time they said the mortgage was not approved because the valuation was wrong,which made no sense as no valuation had been made on the property. This email stating the above information was sent to me only after repeated attempts to contact them and also they said that they had sent me an email stating this a month previous which was total rubbish. Further attempts to contact them to clarify this has been ignored. I am now quite sure after reading Clives letter that I have been well and truly scamed..
B.Mckenzie

G F Crudgington says:
February 22, 2010 at 4:46 pm

Like Bryan & Clive I have also had similar experience with Low Rate Spanish Mortgages and paid £228 for survey only to find that the survey was never done and the mortgage was refused on the basis of an “In House Valuation” made by a company Dominion Credit and Finance located in Singapore, thousand of miles away from my property in France and that the loan was below the Dominion Credit and Finance funding level. Communications have not been good. I doubt whether they will refund the money paid for a survey which was never carried out. I had hope that it was all above board but I am now convinced that it is a scam and it is highly unlikely that I will get the survey fee back.

Matt Onel says:
June 5, 2010 at 1:30 am

I was approached by ubiquitous mortgages and offered a multi currency mortgage for property in Turkey. They want me to pay the in-house valuation fee upfront as well.
These people have no idea how the buying process works in Turkey as UK nationals require to go through a military clearance process which usually takes about 3 months before a property can be registered in their name (and therefore be mortgageable!).
Also, if the property is ‘valued’ on a desktop from Singapore how can they be sure of the risk factor for the lender’s / underwriter’s capital is tied to? in other words, how do they know the property is really worth the amount of credit they’re offering?
This all sounds a bit too suspicious in the way that they gave me an agreement in principle within hours.

Is there anyone out there who actually DID receive their mortgage through Dominion in Singapore? Can anyone please come forward and do us AND Dominion a huge favour and testify?

However we have received this positive comment from a Mrs Barbara Gosling in Mexico

I read your warning with interest!

While I cannot comment on Clive’s own application, all I can say is that I found the service provided by LRSM to be of an extremely high standard. Indeed, thanks to them I am happily residing in my new property soaking up the sun.

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Tags: Low rate spanish mortgages, Spanish Mortgages
Posted in International Mortgages, Spanish Mortgages | 12 Comments »

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