Mortgage enquiries on the increase in Spain
With prices being reported as rising in Spain and this trend expected to continue many potential buyers are starting to consider whether 2014 is the right time to buy and what finance facilities are availble for non resident buyers.
In tangent with a drop in demand on the purchase side caused by the economic difficulties in Spain and the overall uncertainties the same issues affected the spanish Banks and it has been widely reported that over the last few years
Spanish Banks had pretty much withdrawn from lending.
Whilst the no lending was somewhat overstated it has never the less been diffcult to secure borrowing in Spain since 2008 and product terms for those requiring borrowing have been pricey.
New mortgage terms and conditions
The floodgates are by no means open but bit by bit as 2014 has progressed we have seen significant changes in the
mortgage market in Spain. Slowly but surely the Banks have started to raise loan to values for private purchases, decrease margins above Euribor and relax stringent and in some cases impossible criterias.
Access to Spanish loans
Access to borrowing is improving although the amount of Banks in Spain now is a handful in comparision to a few years ago so limitaions remain as choice of provider has shrunk significantly. Of those lenders left the general market conditions have improved since 2013 as has service levels, speed of underwriting and clarity by way of the new legislation on provision of a
FIPRE.
The benefits of good advice
There still remains in the spanish market communication issues and a lack of tangible information. Protection for the consumer is not at the levels of say the UK neither is regulation that dictates what Banks can and cannot do. For these reasons taking experienced and professional advice when considering a Spanish Mortgage is generally a good idea rather than trying to deal directly with a Bank.
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