Spanish Banks improved lending levels

July data for mortgage lending in Spain

July figures over the month of June showed a decrease as was the same month over month for 2016.

Despite this the lending levels increased significantly against the same month of the previous year.

Activity on completions for Mortgages in Spain which was non existent in the month August historically in recent years has been much better due to legal firms not shutting the doors in the month.

This means that buyers are not rushing to complete before July ends and has given a smoother completion cycle across the year.

Spanish Banks

Spanish lenders are keen to do business at present and are some way behind their target levels fro the year.

Mid season sales offering reduced rates for completions before the end of September this year have been on of the rather bizarre ways the Banks have been fighting back.

Interest rates continue to fall with average rates reducing each month for both fixed rates and variable rate product types.

Fixed rates

Fixed rates after dropping off as a percentage of all completions rose agin to over 38% of all new loans in July. From the less than 5% of all new loans a couple of years ago the rise of the fixed rates has been quite spectacular.

What impact offering full term and long term fixed rates will have on margins in the future we do not know but for borrowers they are undoubtably a good deal.

This may continue for a few months as rates stay stable and Banks look to see off their competition.

After a couple of months of the Spanish Banks adding more new loans than those redeemed in July there was a net outflow.

Read the full article :- Spanish mortgage activity for the month of July

High net worth lending in Spain

New mortgage product for Spain

In an effort to fill a gap in the Spanish lending market a well known Swiss Private Bank has just launched a new product.

The loan allows for both purchases and re-financing.

No cash out is possible as any funds released from an existing property must be placed on deposit with the lender.

The lender offers a wide range of investment facilities set up to meet the needs of Private Banking clients.

Fixed rates and interest only

5 to 10 years fixed rates are available which can be taken interest only but with a minimum capital repayment of 5% per year.

For equity release the maximum initial term for the Mortgage in Spain , which can be re-negotiated is 5 years.

Borrowing up to 100% of the price or value of the property is possible by using a mixture of security of the Spanish property and against cash deposits.

Private banking requirements 

To access the product the applicant must become a Private Banking client and minimum deposit for this to happen is € 2.5m either on deposit or in managed funds.

The product will be ideal for the financially complex clients who do not want to buy a property in Spain with cash but find it hard to meet the normal documentation requirements of borrowing with the Spanish Banks.

Only ownership entities which are outside of Spain are applicable to lending so no-one who is ate payer in Spain or owns the property via a Spanish based company would qualify.

Read the full article:- Private Banking Lending facilities