International Mortgage Solutions

Personal, Professional & Independent Mortgage Advice.

Spain:   +34 952 459 745

Distressed Property In Spain

With banks offering enhanced mortgage terms if you buy one of their owned properties or a on a development they have funded potential buyers in Spain can minimise cash outlay.

Whilst it is true that not all bank owned stock provides good value for money more and more banks are offering higher loan to values, enhanced mortgage terms and more flexible qualification criteria's.

Because of changes to the provisioning requirements being made on banks by the Bank of Spain we are also starting to see more realistic pricing from the banks.

If you look to buy on a new development not currently owned by the bank; the developer will never be able to sell the property at less than the mortgage they have secured; but often now have agreements with the banks that a buyer can have on mortgage the mortgage amount outstanding even if this is the entire price.

Because of the rules around personal guarantees and the affect in the future for any developer, should they default, many developers are willing to get out of the development for just the clearing the loan and will not look to make any profit.

All this means that offers can be made to list prices whether it is directly owned by the bank or still in the hands of the current owner.

Buyers should always balance the benefits of special mortgage terms however with the price they are being asked to pay and homework on similar properties in the area should be undertaken to ensure the buyer is not paying too high price for the property for the benefit of a loan.

From this year banks must write down the value of any asset held for the year and not sold by 20% this is a change to the previous 10% a year. This change has encouraged banks to start to review their pricing rather than have to put move more liquidity to their already creaking balance sheets.

In general if you buy bank stock you can relatively sure it will be legal but independent legal advice should still be sought. It is not unknown for banks to be less than transparent about existing debts like community fees and IBI until completion day when it can be too late to pull out. In Spain if a debt is outstanding on a property on day of completion the new owner will pick up responsibility.

Once a property has been found it is a good idea to get an independent broker to check out the mortgage facility available and to make an application on your behalf. The offering of 100% does not always mean it is available to anyone who buys but can be used as the headline to encourage enquiries only to at a later date refuse the individual client.

A good website to check the bank stock and new promotions is www.idealista.com. Whilst not all banks advertise their wares on this site many do.

Advice on the mortgage side can then be gained for free from us so contact us today.

IMS themselves also have a selection of bank stock where the mortgage facilities are tried and tested and where checks have been made to ensure the quality.

 

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Spain: +34 952 45 97 45 | Fax: +34 952 45 97 42

International Mortgage Solutions, Lista de Correos, C.P 29110, Monda Malaga

International Mortgage Solutions guarantee the following:
Neither your personal financial details or other personal information sent for a mortgage enquiry or application
will at any time be passed to or sold to any third party for data base marketing purposes or any other reason.
Information in relation to a full mortgage application will only be passed to the bank or relevant banks to which we are making an application.

Please note that all UK mortgage enquiries are passed with the clients permission to an authorised independent UK broker.
We do not advise on or arrange UK loans directly ourselves as we are not FSA regulated to do so.