Non euro earners and Spanish loans

New mortgage regulation in Spain affects non resident borrowers

Since the new regulation was introduced in Spain for lending more and more Banks have removed themselves from offering their full portfolio of offerings to those not earning their income in Euros.

This is due to the requirement under legislation to allow someone to request if FX rates drop by more than 20% that their loan is moved to the currency of their earnings.

Spanish Banks cannot offer all currencies

Many lenders are not in a position to move Spanish non resident loans to certain currencies and do not have the systems or the inclination to deal with more volatile and less traded currencies such as the Dirham.

All lenders in general have removed the access to fixed rates for non euro earners as the currency for the loan has to be bought in for the long term and the cost of any move would be sizeable.

Use a loan broker to find a solution

Whilst it is now more difficult to find providers from non euro earnings at IMS we are still able to place applications and can achieve variable rates for most nationalities.

Read the full article :- Certain non EU earners struggle to get a loan in Spain

Re-mortgages in Spain

Spanish Bank to do re-mortgages in Spain

After many years of all Spanish Banks dismissing the re-mortgage market one major lender has decided to put some focus on this area.

In a year when Covid 19 has disrupted completions and property purchases and after a fraught 2019 when new regulation delayed many Spanish Mortgages they are looking to add new business.

No fixed rate option

Only a variable rate is available but there is no Bank arrangement fee applicable and they will consider allowing any subrogation costs to be added to the loan.

Loan to value cannot exceed 60% and at initial purchase the owner must have put in a minimum of 30% themselves.

No life cover required

A big attraction could be that they will not require life is contracted and many previous loans had this product as compulsory and this has added to the monthly cost even if it was not required.

Read the full article :- Major Spanish Lender puts focus on Re-mortgages.

January loan figures before COVID19 in Spain

Beginning of 2020 looked positive

January Spanish loan figures looked to be a positive start for the year.

In most areas lending was up in terms of numbers of and capital lent despite the fact the average loan size fell quite heavily.

there were nearly 10 thousand more new loans added the Spanish Banks loan book than redeemed in the month and after many months of delayed completions due to new regulation things looked to be getting back to normal.

Interest rates stable

Interest rates were stable very close to Decembers rates and slightly down on last year. Variable rates were still the choice of most borrowers with fixed rates stabilising in last few months at around 42% of all new transactions.

Madrid after a very positive 2019 had smaller levels but other areas saw significant growth.

Impact of Covid19 on the Spanish lending market

COVID 19 and the shut down of Spain will cognate all this as completions started to dry up back end of February and new applications are more or less zero.

What impact for the full year this will all finally have is unknown at present but for sure 2020 will now be an even more challenging one than 2019.

Read the full article: - Spanish loans the calm before the COVID19 storm