Mortgage Information

Leading independent mortgage broker for Spain and Portugal

 
 
 

 

Learn more about Mortgage Direct

Learn more about Mortgage Direct

 
 
 

 

Welcome to our November newsletter. This month we are focusing on the latest market news. According to data released by the National Statistics Institute (INE), the number of mortgage loans signed per month plummeted by 29.9% for August 2019 compared to the same month last year. 

In terms of how Mortgage Direct has fared in comparison, whilst we have completed the same number of transactions in January to October this year as in the whole of 2018, we have noted a similar trend in our own stats, seeing a considerable drop in numbers of signed mortgages for the month of August this year compared to August 2018. A similar drop was also seen for September 2019. 

One of the main reasons behind this has been the introduction of the new mortgage regulations at the beginning of the summer, which caused significant delays as a result of new processes, including the new cooling-off period before mortgages can be signed. Another cause is that some banks have reduced maximum lending levels for those not earning in Euros. It is now much more difficult to secure 70% mortgages, as some banks will only lend up to 60% for certain nationalities (British included), as a result of the increased risks when lending to those not earning in Euros. As mentioned in last month's newsletter, a number of banks will no longer consider clients whose earnings are in certain non-Euro currencies, meaning some clients residing in Hong Kong, Singapore or the UAE, for example, have had to switch mortgage lenders. This of course has caused delays in the completion process.

The good news is that we know exactly which banks to approach, depending on the client’s profile. We know where we can still get 70% mortgages for British clients and non-Europeans. In October, we saw an increase in mortgage completions for our clients, so we believe the big drop in mortgages being signed over the summer will prove to be a temporary blip. There are still challenging times ahead and of course large numbers of British buyers are still waiting to see the outcome of Brexit. Many will be hoping that, whichever way it goes, the exchange rate will move in favour of Sterling and increase their buying power as a result of the increased value of their deposits.

 

Market summary

 

We conclude with an update on the current mortgage conditions for non-resident/foreign clients. Rates do vary with the percentage borrowing, mortgage term, redemption terms and whether ancillary products, such as life cover, are contracted. For standard cases, we can achieve 1.95% fixed for 10 years and 2.25% for 25 years and variable mortgages at Euribor plus 1.5%. With the Euribor still being negative this variable rate is very attractive although the Euribor may of course increase during the term.

For high-net-worth clients and good profiles, we are achieving rates as low as 1.65% fixed for 20 years with no life cover and variable at Euribor + 1 - 1.25%, meaning the initial rate can be as low as 0.74 - 0.94%. 

Some banks are making their products even more attractive by waiving all opening fees.

 

If you have a client needing a mortgage, please don’t hesitate to get in contact.

 

Mortgage enquiries

 

For any mortgage-related enquiries, please don’t hesitate to get in contact

with Katherine by calling her on +34 695 706 749

 

Mail Katherine for a mortgage enquiry

 

 

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Maximum LTV

 

Up to 70 % for non-residents

Up to 80 % for residents

 

 

 

Variable interest rates
(non-residents)

From Euribor + 1% = 0.74%  
Current Euribor -0.269%

Fixed interest rates
(non-residents)

From 1.65% for the whole term (20 years). Terms up to 30 years

 

 

Useful information

 

Mortgage products & process

For further information on mortgage products, please refer to our website. Our step-by-step guide also helps clients understand how the process works.

 

Mortgage quote

To receive a mortgage quote with no obligation, please complete our online form or contact one of our qualified advisers - please rest assured that all information is treated as strictly private and confidential.

 

Required documents & charges

In terms of the documents required, we do not need these to provide an initial quote. Please refer to our charges page, which gives an example of the costs involved in a typical house purchase. Depending on the area of Spain, clients should allow between 12-15% of the declared price to cover all fees and taxes.

 

 

 

 
 
 
 

Copyright © 2019 Mortgage Direct SL, All rights reserved.
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Mortgage Direct SL

Calle Caballeros 37-2

Valencia, Valencia 46001

Spain


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Our contact details are:
Phone: +34 963156011
Email:  info@mortgagedirectsl.com
 

 

 
 
 
 
 
Leading independent mortgage broker for Spain and Portugal
Learn more about Mortgage Direct Learn more about Mortgage Direct
As we mentioned in our June newsletter, the mortgage industry in Spain is now subject to regulations meaning that a company wanting to give mortgage advice to clients must hold an accreditation licence from the Bank of Spain and its advisers must complete the Creditos Inmobiliarios course (including a minimum of 65 hours study) and pass the Asesor en Préstamos Inmobiliaros exam by no later than June 2020.

Having completed the course, Mortgage Direct’s advisers recently went to Barcelona to sit the exam and we are now pleased to confirm that all 8 of us passed and we have also received our official certificates confirming our completion of the credit intermediary training programme. This is a huge feat for all concerned considering the fact we had so little time to prepare for such an intensive course.

What does this mean for you as a collaborator?

One of the main lending banks has given mortgage intermediaries a deadline of the end of September for at least one adviser to have passed the exam in order to continue advising clients. If the exam has not been passed, the mortgage intermediary will no longer be allowed to give advice and can only introduce the client and take no further part in the mortgage process.

In the case of an intermediary without the qualification, although they could introduce the client to the most suitable bank, they wouldn’t be able to guarantee that the bank would then offer the client the best deal for them. The client could be kept in the dark regarding the progress of the application and the introducer wouldn’t always be able to keep the collaborator updated. 

For qualified advisers, such as ourselves, the continued involvement of the adviser would mean a client’s application is more likely to be approved, since the adviser will present the case in the best possible way and can ask for additional supporting documents if required, whereas for a case dealt with by a non-qualified introducer, the bank may consider only what has been presented by the client and decline the application if it's not sufficient.

The exams are a major part of the application for the licence from the Bank of Spain and we now await the completion of the process. We expect it to be issued in the next couple of months and will keep you updated via our newsletters and on our website.
If you have a client needing finance, please don’t hesitate to contact us. We can continue to give the best advice as we always have done.

Mortgage enquiries

For any mortgage-related enquiries, please don’t hesitate to get in contact
with Katherine by calling her on +34 695 706 749
Mail Katherine for a mortgage enquiry

Maximum LTV

 
Up to 70 % for non-residents
Up to 80 % for residents

Variable interest rates
(non-residents)

From Euribor + 1.35% = 1.35%  
Current Euribor -0.108%

Fixed interest rates
(non-residents)

From 1.7% for the whole term (20 years). Terms up to 30 years

Useful information

Mortgage products & process

For further information on mortgage products, please refer to our website. Our step-by-step guide also helps clients understand how the process works.

Mortgage quote

To receive a mortgage quote with no obligation, please complete our online form or contact one of our qualified advisers - please rest assured that all information is treated as strictly private and confidential.

Required documents & charges

In terms of the documents required, we do not need these to provide an initial quote. Please refer to our charges page, which gives an example of the costs involved in a typical house purchase. Depending on the area of Spain, clients should allow between 12-15% of the declared price to cover all fees and taxes.
 
 
Copyright © 2019 Mortgage Direct SL, All rights reserved.


Our contact details are:
Phone: +34 963156011
Email:  info@mortgagedirectsl.com

 

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