Improvements in 2014
2014 saw a marked improvement in the lending facilities for non resident buyers in Spain. Previoulsy focussed on only providing mortgages for the sales of their own properties most Banks introduced lending targets again last year.
Key improvements included some reductions in margins being charged, flexibilty for quality applicants, and a willingness to negotiate on some of the terms and conditions.There remained a lack of transparency with applicants not always being offered the best possible terms but in general Banks wanted to lend.
2015 market place
Already in 2015 a number of Banks who were not lending to non residents in 2014 have made clear their intention to focus on this market in 2015. This will increase competition between lenders and should lead to futher improvements both in terms of conditions and service levels.
What needs to happen
Spanish Banks need to move away from the old fashioned approaches many maintain. Improvements would include allowing a financial approval to be put in place before a property must be valued. Having standard pricing which all branches must adhere to with flexibilty to improve on this for very high quality applications. Improving mortgage rates and being willing to do away with costly and unecessary compulsory products. Spanish Banks should offer instead cost effective other solutions which applicants could elect to take rather than being forced to.
Underwriting
The power shift away from risk to sales will continue during 2015. We will not however return to the gung ho days of the boom years. Sensible but pragmatic risk assessment should be the name of the game. A move away from tick box underwriting and back to the ability to look at each application on its merit and in its entirety.
Read the full article:Spanish mortgage news 2015 outlook
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