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Spanish mortgage update

Discussion in 'Buying Overseas Property' started by Damian George, Jun 17, 2008.

  1. Damian George

    Damian George New Member

    Mortgages in Spain are becoming more increasingly difficult to obtain as the lenders tighten their belts.

    As in the UK; the Spanish lenders are constantly changing their product ranges and increasing fee’s making it a mine field for non-residents when trying to source the most suitable product(s).

    AIP’s that usually take 48 hours are now taking around 4 to 5 days! And the endless list of the documents they require can be very frustrating. These however are all pitfalls that will need to be overcome when your property is due for completion.

    Interest rates are also at the highest in over 5 years in Spain with the current annual EURIBOR rate at 5.5%, the banks will then add their margin of lending to this to give you your actual mortgage rate, this can be anywhere from +0.75% to +1.75% depending on the product that you take.

    The key to obtaining your mortgage in Spain is to be Patient and supply the information requested by the bank or your broker, there are no shortcuts like self cert mortgages anymore (although if you are only looking for a low LTV then some banks will offer and minimum document policy).

    Using a broker although may cost a little more will take away many of the headaches as they will have constant updates and be able to feed the latest & most up to date information to you the client. Key Mortgages S.L (Key Mortgages - Overseas Mortgage Consultants) is one such broker with access to all the big lenders in Spain; they do not charge any fee until they have actually had your loan approved! So you know you are not wasting any time or money.

    For free help and advice please email [email protected] & quote imsfx.
  2. andyintheworld

    andyintheworld New Member

    Just as a side note to anyone purchasing in Spain with a mortgage - do try and use a broker! - KeyMortgages are very good and I know Steve personally.

    Whatever you do, dont put any money down until your mortgage is sorted - no reservations, no deposits....

    Estate agents will generally work with the nearest bank to their office and will tell you they have a great relationship with the manager blah blah - but that means absolutely nothing and the manager certainly wont refund your deposit if the bank decide they dont want you as a client - regardless of how pally the estate agent is with him.

    Most estate agents I have met in Spain know absolutely nothing about Spanish mortgages, the mortgage market, product comparisons, which bank is the best fit for the client etc but reading their websites would certainly convince you otherwise!
    They want the business because it means extra commission - nothing more.

    So, dont be taken in by it! Use a good broker - the same way you would in the UK.
  3. John

    John New Member

    Are you running 2 ids on here by any chance? :)
  4. andyintheworld

    andyintheworld New Member

    Who me???
    No!!!! i am not!

    I just know first hand the problems that people can run into when they take financial advice from estate agents in Spain!
  5. Damian George

    Damian George New Member

    Hi John,

    I dont know Andyintheworld -so no

    i am also using my real name and you are free to contact me at any point.

    I was helping Steve who has just started his own firm after many years working with us at at IMS Mortgages
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