First lender in Spain drops loan to values due to Brexit worries
In an unusual move Sabadell Bank in Spain has become the first non resident lender to make a sweeping change to its loan to values for UK applicants wanting a Mortgage in Spain.
Have other lenders taken action
Whilst other lenders remain cautious when underwriting a loan from a UK applicant and only give the full 70% for top quality borrowers no others have just precluded everyone who is resident in UK from the 70%.
Whether Sabadell have jumped the gun and others won't follow or whether as was the case during the banking crisis eventually they will all drop to 60% remains to be seen.
Is 70% still available
For now whilst it is a diminishing pool of lenders and criteria are tough there remains a handful of 70% loan to value lenders accessible for UK residents buying in Spain.
Applying with Sabadell, what should I do
For those going through the application process currently with Sabadell they may fall foul of the change and if they need 70% to complete should consider looking for an alternative now.
Read the full article:- Sabadell Bank drop loan to values for UK residents
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