Veranda Al-Andalus - Keymare

Hi
My partner and I bought off plan in March last year but with the credit crunch we are finding it impossible to get an 80% mortgage. Our apartment will be complete in June next month. We are thinking we will loose our 20% deposite. On the internet they are now selling apartments for less  - 30 to 35k euro.
Has anyone got any info for us. Is there anyone in this situation. Did you get an 80% mortgage. We bought through MRI - what are your experiences with MRI.

Thanks for reading
Geri

 Spam post or abuse? Please let us know

Hi Gerda, 
                           sorry I can't help but I wish you good luck. As you will have seen on this forum many people have had similar problems and I am sure you will get some good advice.

 Spam post or abuse? Please let us know

Hi Geri, I do sympathise &, as Acapulco said, there are many stories of members who are in the same boat. 

I'm tempted to say I can't help but wonder why people decide to buy in Spain if they haven't thought too much about how they'll cope if the exchange rate changes as it unfortunately has. 

Whyever didn't you arrange to forward buy euros from a currency bank ? You should've set a rate to protect yourselves. 

We didn't need a mortgage so I don't know how it works. Do you leave arranging a mortgage till just before you complete ? Please explain it to me why you are now in the position you are in. In the UK you arrange a mortgage before agreeing to buy. At least that's what we did & it seems sensible. Isn't that the way it works in Spain ?

SMILEY, an EOS member who's a mortgage broker on the CDS,  could advise you. Worth a try. I'll ask him to pop in & see thread. You cannot use your PM system till it's activated so add you name to the thread Justin, help required please regarding PMs to new members..

Join your owners forum, I believe it's here http://www.eyeonspain.com/ViewDevNo.aspx?dev=A199

Good luck.


This message was last edited by morerosado on 5/26/2008.

 Spam post or abuse? Please let us know

Dear Gery:

Have developers meet all the commiments according to contract? Have you exposed that situation to them and try to negotiate a discount  or any other  credit terms for the payment?

Best regards,

Maria

 Spam post or abuse? Please let us know

Hi Geri it is still possible to get an 80% mortgage however it should be noted that many lenders are withdrawing the facility owing to credit crunch and also many of the apartments in this area are coming in at valuations less than the actual purchase price which has an effect on the mortgage available. There are many people that have walked away from their deposit and are having discussions with lawyers about who is culpable and whether there is any recourse against the agent that sold to them.

 Spam post or abuse? Please let us know

Thanks for answering Smiley & Maria. (Knew you would )

 Spam post or abuse? Please let us know

Hi Geri
Probably a stupid question but just a thought. If you are having a repayment mortgage have you looked into an interest only option for a short term? Or maybe if you have a repayment mortgage on your current home maybe you could look into options on that. It's just a thought and I'm sure you've already looked into different options but one of my friends has just taken a similar option for a short period so I thought I would make the suggestion. Hope all works out for you.

 Spam post or abuse? Please let us know

Flossy mate, where've you been hiding ? Welcome back.

 Spam post or abuse? Please let us know

Thanks for the info Candyfloss but I'm on an interest only mortgage.

Geri

 Spam post or abuse? Please let us know

Thanks Smiley
I will email marbella mortgages with our details.

Geri

 Spam post or abuse? Please let us know

Thanks Acapulco

Geri

 Spam post or abuse? Please let us know

I think Candy Floss possibly means an 80% interest only mortgage in Spain. Seems to be a bit of cross purpose as the way that I read her post was that she had interpreted your post as if you were perhaps going to struggle to meet monthly payments hence take interest only here in Spain or if not achievable then switch UK mortgage to interest only ( I am a man so interpretation of the female mindset is not top of my list of abilities - if i have misinterpreted Candyfloss then apologies).

If i revert to the original reply it is possible to get 80% of value (up to 90% of purchase contract price and possibly 100% if the situation is right) with interest only but it is constrained by the valuation and where you are buying that will be critical, as valuations are below what might have been expected with some valuation companies returning figures less than purchase contract price. Without further more specific information it is impossible to go into any detail.

 Spam post or abuse? Please let us know

Thanks Morerosado
As for foward buy euros - we didn't know anything about that and MRI (who we bought through) certainly did not give us that information.
MRI said it is pointless getting the mortgage until it is completed, their words were ''why pay for it now''. But when we popped over in April another broker said that we couldn't have got a mortgage last year as the property was not built and we had only paid 20% deposite.
So lots of people with lots of different information.

Geri

 Spam post or abuse? Please let us know

The other broker was 100% correct - you cannot get a mortgage on a property that is not completed and licensed. However what you could have done was secure an agreement in principle subject to property valuation. It would have been subject to updated financial documents approaching completion but could have been done nevertheless. However considering timing and what has happened with global credit crunch a great many lenders have moved the goalposts so subject to where the AIP was agreed you could well have found yourself having to switch lender anyway. We have had to do that for a great many clients - especially with Halifax taking the stance they will only advance to 60% of purchase price or valuation whichever is the lower - someone of a more cynical nature than I might think they didnt want to lend in Spain any more (or for the time being anyway) so thank the Lord am I not a cynic!!!!!!!

 Spam post or abuse? Please let us know

Hi Smiley
Thanks for all replies
We bought off plan in Veranda Al-Andalus in March '07 and to be completed in September '08 for 206,500euros and paid 20% deposite.
We have looked on the internet and the price seems to have dropped by 30 to 35k.
We bought through MRI which we don't believe this was a good thing as they also led us to believe that our taxes could be included with our mortgage but now we don't know.
I have just emailed marbella mortgages with my contact details.

Geri

 Spam post or abuse? Please let us know

Geri, aren't you glad I screamed for "SMILEY" ?

 Spam post or abuse? Please let us know

Morerosado
Yes your are FABULOUS

Thanks a million
Geri

 Spam post or abuse? Please let us know

Sorry Geri
If I had a brain I'd be dangerous  .
I was just thinking that if you were perhaps finding it difficult to obtain an 80% mortgage on the property then maybe a remortage on your current property to enable you to have a less percentage on the Spanish one might have been a short term solution as it is happening here in the UK and have heard lots of different stories of what people are doing with options on mortgages while riding the storm.
Smiley, you're right, you will never understand the workings of the female mind so stop trying  

 Spam post or abuse? Please let us know

Not to worry Candyfloss we'll get their in the end.
I'm Interest only in the UK with not much available funds to spare (current market)as I already dipped to have a huge face lift on my flat- worth it in the end but could now do with the extra cash

Geri

 Spam post or abuse? Please let us know

Hi Geri

I'm afraid you have to take everything told to you by your agent with a pinch of salt. These are te same stories that were told to us and there are others on the forum too. The "get a mortgage at loan to value not purchase price so you can include your IVA and costs" was the biggest economy they made with the truth. If you look back there is a thread somewhere about our purchase going pear shaped because back in October last year valuations were coming in lower than the purchase price!! Is the builder's mortgage not an option? Another member here took the builder's mortgage on her purchase at Thalassa and it saved quite a lot of money.

Mark

 Spam post or abuse? Please let us know