Mortgage news.
With 2015 seeing improvements to Mortgage in Spain facilities the Spanish Banks continue to look to push forward in 2016.
Key changes include lenders who have been out of the non resident market for many years coming back in with a bang, and more flexible approach to pricing and risk assessment.
Fixed rate options
After years of promoting variable rates only, many lenders in Spain are now offering and will continue to offer in 2016 fixed rate product. With rates as low as 2.75% for a full 20 years applicants should consider fixed rate options rather than variable if they intend to hold the loan in the medium to long term.
Loan to values
More Spanish lenders have or are considering adding themselves to the list of lenders that offer non fiscal residents of Spain up to 70%. In 2015 most limited their offering to 60% but during 2016 it is most likely 70% will become standard for a number of lenders.
Spanish Banks
Spanish Banks have in general doubled targets for 2016 and remain very positive about the purchase and borrowing market despite some of the outside pressures in Spain and political uncertainty. It will be the aim of the Banks to finally reverse years of net lending outflows each month during 2016.
Overview
Clients going through an application process in Spain during 2016 should experience a more want to do attitude from the risk departments as the power shifts from underwriting to the commercial teams. Whilst things will not return to the rather lax assessment of criteria from the boom days a more pragmatic approach to mortgage applications will be the name of the game.
Read the full article:- What does 2016 hold for Spanish Mortgages
