mortage

we are about to complete on our property and have been advised that taking over the pw mortage is the best option has anyone got any advise on this for us please .

Hi Shampoo,

If the product meets your requirements then all well and good; you may be aware that there are upfront savings to be made when subrogating the developers mortgage, in that there are no mortgage costs to be paid - however if they are insisting on you taking their compulsory Life Assurance product and their rate is higher than an independent lender these savings would soon be swallowed up!

It is important to bear in mind that taking the developers mortgage means you continue with the existing conditions in place, e.g. rate margin and term and in doing so you may not be taking over the best terms available to you in the current market.    If you are happy to continue with the current conditions then it may be an option for you to consider, with the benefit of lower costs!  

Good luck!!!

I have been offered the same in principle mortgage from Bancaja and my solicitor has advised that this is the cheapest way forward.  The bank are also relaxed about the valuation of the property and assume that the current valuation is the same as the price when you committed to buying - there would not therefore be any valuation costs to worry about and the risk of a massive decline in value (and therefore mortgage amount) is not a problem which could arise with some other bank.  However, thus far I have not been able to obtain a quotation from bancaja and therefore unable make any comparison.  I do know that they are prepared to consider 5 year interest only thereby varying the terms upon which they lent to the developer.

Hope this helps

We  were offered the same sort of thing but with Banco Popular. The incentive of subrogating appeared worthwhile until I actually found out how much a mortgage was going to cost compared with another lender. Their spanish interest rate was a lot higher for the first year ( 5%), so the savings were wiped out, and they could not offer an interest only loan, only a repayment loan. Another issue was with the accompanying current account which I had to take. The bank charges 6 euros per month for admin, even though I do not have anything else set up on it.

I have now changed to Halifax Hispania. I have an interest only loan on 1.8%, with a setting up fee of 1000Eu. The only other cost is a valuation fee of 350Eu. Also, the fee for the current account is fixed at 25Eu yr, plus you have an english speaking staff.

There maybe better deals about if you try hard enough, but I was happy with the Halifax.

Good luck