Mortgage Advice

Its too sunny and nice to be orrible today. So today has been declared be nice to everyone day.

Oh and a tinto Verano for me Justin.......hmmmm think I may skip to the beach for lunch..

Well skip there and crawl back if its a good day. Having said that was out last night for a couple of malibu and cokes - ended up with 2.5 hours kip before getting up for work!

This is the life!

I AM nice

Hi Jenni I have sent an e mail with my problem for a solution - take a look and see what you/he thinks.

It is probably not so important to be trusted by the developers or property agents in Spain. It is in my humble opinion better to be trusted by the lenders and valuation companies alike and also that one is compliant with the ethics of lending here in what is a non regulated market. While I do not doubt the credentials of you friend in Hull are Spanish mortgages his specialist subject. Does he have access to every single lender both on and offshore - can he liaise with lawyers and risk directors in their mother tongue to argue the benefits of an application that under normal circumstances would be declined. As a company we placed well over 100,000,000€ of Spanish mortgage business last year. We are not necessarily the biggest in Spain but we act in tandem with two other independent brokers (based in Spain) to ensure that our combined clout with lenders ensures we get them to do things others might not be able to do.

To be fair we are independent of any property company and frankly while it would be nice, we do not care if we are trusted by the property company or not - the important thing is whether we are trusted by the client which the benefit of experience tells us we are - just under 75% of our business is derived from personal recommendation and we no longer use any form of advertising. We have a few independents agents who introduce clients to us and appreciate our candour in explaining things correctly and not singing the hymns the larger companies would perhaps prefer us to sing in terms of the questions we get asked relating to rental income and over inflated expectations on valuations.

Oh and by the way my toes are covered with such thick skin (as are most crocodiles) I wouldn't feel you stepping on them.

patrick you gave me some advise telling me to get onto my mortgage brokers about having documents since christmas remember? i did as you said and told them to get thier finger out. They immediately got onto it when i told them i was talking to other brokers now and have come back with this offer in principal.  would it be real cheeky of me to pick your brain as to whether its a good mortgage deal. 

Hi Peps if you want 80% with 10 years interest only its competitive. I know nothing about your circumstances so whether it is right for you or not I could not hazard a guess. If it is the lender I think it is they are more prone to tread with extreme caution when advancing in Spain as the have not been here very long. There are lenders who will advance on properties with very minor discrepancies on build size etc (which can often feature in Spain) whereas this one might not. When they are a little longer in the tooth then they will adopt a more flexible approach. They also have a tendency to require more proof of income documents than some others.

Hope this helps

Rgds

but does this not mean that our proofs etc. are enough and they have accepted us for the mortgage when the licence comes in? is this not a solid offer or could they still change things or refuse if there is a slight difference on size when they value properly.  they have given us a first valuation of 260,000.  we are in a good position i think. no financial problems or income etc.  i own my own business so am not going onto the mortgage because of all the hassle of providing books etc.  could you do a better mortgage? we were only really concerned with monthly outcome.  allocated ourselves 5-600 a month for spanish mortgage.  we already paid 30% cash so being offered 80% just gives us some cash back.  i'm wondering now if interest only is the best way to go or not. sorry if i sound a little thick, i'm not but mortgages are not really my thing.

Hi Peps I dont know if you have been approved for the mortgage or not - best person to ask is the broker. If you had been dealing with us then you would have know the status within two weeks (possibly a week) of receipt of all documents to Spain. If you have not been asked to provide tax returns etc and accountants references bank statements and all the other gubbins then you have not yet been approved. The bank cannot give a valuation report until the LFO is issued - a pre val can be done but rarely worth the paper they are written on. If for any reason the property does not comply with the exact building licences in terms of size etc of the block they may refuse to lend.

Depending on how long you can wait we MIGHT have an 85% of value non resident product by next month (well they said June - didnt specify the year so perhaps I am being a little assumptive) with interest only option. No ideas yet on exact criteria yet and might be crap by comparison with other products but as I say depends on how long you can wait and whether you want 85% anyway.

Capital Financial - part of MRI I assume - Arenal Duquesa I understand has ongoing problems with Licences - whether the lender will lend there or not I couldnt tell you as I have not tried to place one with them at that development. If it is the lender I suspect then even the smallest of irregularities will mean the mortgage advance will not be approved. Bank valuation companies are controlled by the Bank of Spain although sometimes the vedricts are wildly varying - valuations can come in higher or lower than purchase price and while there is supposed to be a set formula two different valuation companies can produce varied reports.

Rgds

Patrick,

I have just received your email and have forwarded it onto Kevin. His experience is in a regulated industry and his experience on a great deal of his overseas finance requires a mixture of lending.

I can appreciate that your knowledge is vast and you are well connected, however you can understand the concern that people have when they do deal with an un regulated financial service.

 I will add from my own experience that the case you have given me to pass onto Kevin is not something the average Spanish property client needs.

The only reason I commented on someone stepping on your toes was the sharp manner  in which you replied to me. To the affect of Kevin being under the thumb of developers and under writters.

Anyway, please await his reply,

Jenni

Can anyone help please?

I paid my reservation deposit for an apartment on Al Andalus Thalasa on 7th April & the remaining deposit is due to be paid by 7th June. I have had my contract & am happy to sign it & send back.

My issue is that my mortgage broker is not doing anything at present to secure a mortgage for me. He has been given our financial information (12th April) & says he shouldn't have a problem getting a mortgage agreed. But other than that We have heard nothing.

The property should be finished in September (allegedly!!).

My concern is that I am handing over £25K with no mortgage agreed.

What happens if he cannot secure a mortgage? Is this the normal process?

Any advice gratefully received.

Thanks

Noreen

Has the broker quoted you on a specific product or offered you a choice. In the event that he has suggested something specific ask him to confirm by  e mail or in writing that he can get you the product. It is possible to get an agreement in principle from a lender subject to valuation and updated economic information although usually the lenders do not issue any kind of certification to this effect. We simply confirm by e mail which product or indeed products (from a choice) the client is approved for. 

Hi Smiley

Thanks for your response

No, he hasn't given any specific product information.

We have just provided information - no evidence such as pay slips etc.

I would feel more comfortable with an agreement in principle & I think I will email him to that effect.

Thanks again.

Noreen

NO Peps an agreement in principle if that is what you have, is precisely that. It is subject to property valuation and also no change in financial circumstances from the time the AIP was given until the time that the mortgage is needed for completion. If there is a significant delay (and for some lenders this can amount to as little as a calendar month) then they will require updated bank statements and payslips.

The point I was trying to make to Noreen was that for her to feel comfortable about paying her next staged payment on her off plan deposit she should ask her broker to get her the AIP if she wanted 100% certainty that the mortgage would not be a problem.

Rgds P

Hi Fred,

Yes this is quite typical of Spanish Banks.  Just persist that they give you a print-off of all the repayments and associated charges, they will give them to you eventually.  They know that setting up a Spanish mortgage is expensive and would only like you to see the costs 2 minutes before the Notary comes into the room to get you to sign.

Insist you get a copy from your solicitor or bank, then get someone to translate the meaning of all the additional costs (of which there will be many)

Good luck!

Gillespie.