80% Mortgage possible ?

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02 Sep 2010 00:00 by Crist555 Star rating. 50 posts Send private message

Hi Everone

 

Good day

My friends Son wants an 80% mortgage is that possible nowdays ? he has a very good credit rating plus good job in the UK

He feels in the long run Spain may offer more then the UK ( plus his Dad lives in Spain )

any pointers for him would be welcome , I can give more details if required (PM )

 

Regards

Cristina 

 





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02 Sep 2010 20:22 by moonbeam Star rating. 14 posts Send private message

The banks are being really stingy about granting mortgages nowadays.  But if your son can find a property he likes from the stock of repossessed properties that the banks have at the moment it´s a different story.  In some cases they will grant a 100% mortgage!

The main banks have websites listing the properties for sale.

Sometimes the bank will ask for a guarantor.  Try to avoid being a guarantor at all costs.  A lot of people imagine that the guarantor is the last response if payments fall behind, but here the guarantor is the first response!  The banks go after the secure and easiest method of obtaining money owed, be it for a house or car etc.  They don´t waste time chasing the non-payer, instead they quickly go after the guarantor - and they will enforce the conditions, even if it means leaving a grandmother homeless in the streets as has happened in the past.  Even if the grandmother said she really didn´t understand the implications of being a guarantor etc.

The banks have no mercy!





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02 Sep 2010 21:26 by Goldie Star rating. 154 posts Send private message

Hi, if you are a non resident I think the banks would only lend to 75%?





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02 Sep 2010 21:52 by EOS Team Star rating in In Spain of course!. 4018 posts Send private message

EOS Team´s avatar
60% seems to be the norm at the moment although 70% is possible. As was mentioned before if you buy a bank owned property they will normally give you 95 - 100%. Justin

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02 Sep 2010 21:59 by Goldie Star rating. 154 posts Send private message

Justin, is that 95 - 100% for non resident as well?





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02 Sep 2010 22:12 by rowlandsbb Star rating in Gloucestershire &Hue.... 771 posts Send private message

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As everyone knows Polaris World have discounted units with 100% mortgages subject to status-so come and have a look and I'm sure that a good deal can be done 

Also CAM Bank but in general circa 80%

Now you have to take a view on the future but history tells us that prices will recover 

So if you want to buy come over and have a look- if your status is good a mortgage wll not be a problem on above mentioned units



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02 Sep 2010 23:47 by fultond Star rating in Haywards Heath & Tor.... 242 posts Send private message

Just my interpretation, but worth thinking about:

If you ask a bank to lend you money on a property they do not already own they will be very risk averse. They will probably give you an 80% mortgage, but not on favourable terms. They will be worried that prices may fall and you will default.

If you want to buy a property that they own, that is currently empty, and they are not getting any mortgage payments for, then their attitude will be totally different. They really want you to pay the mortgage on it, therefore they will basically ignore all the usual concerns and alloww you to have a high risk mortgage. At least they have moved on an overvalued property and are receiving monthly payments against it.

Anybody have a different view on this?

Dave 



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03 Sep 2010 09:38 by sharonw Star rating in Coin, Malaga. 281 posts Send private message

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Hi Cristina,

The maximum a bank in Spain will lend to a non resident is 70%, against the lower of purchase price or valuation. However when buying a discounted / repossessed property (either direct from a bank or via an agent) higher percentages are offered.

 



_______________________

Regards

Sharon

sharon@tmasspain.com

 www.themortgageservicegroup.com

 




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03 Sep 2010 09:45 by rowlandsbb Star rating in Gloucestershire &Hue.... 771 posts Send private message

rowlandsbb´s avatar

A realistic interpretation and the banks are taking a comercial approach to selling the vacant propertiers they own

This gives buyers a good opportunity to find a great deal...not all of them are good deals and you have to look for them

In the end when buying a holiday or retirement home it comes dowm to comparing what you can get for your money in different locations, deciding where you want to be and the life style you want, then do the best deal you can and get on wth your life

Buying in Spain is very competitive in all respects compared with say France, Portugal etc

And in all countries you have to make sure that you get good legal advice and approach the purchase is the same way as you would in UK-do that and nowadays everything will be OK



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03 Sep 2010 09:50 by Faro Star rating in London. 1139 posts Send private message

Also if the land is in any way classified as rustic then he will really struggle to find a bank to lend and certainly not at more than 50%.

Here's a real funny one. Halifax bank are asking that the same amount as the mortgage be placed on deposit with the bank for the duration of the mortgage. That means they want the property as security and the deposit account. Halifax believe this to be a very good deal and emphasise they will pay a good return on the deposit account!!!!





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03 Sep 2010 15:50 by EOS Team Star rating in In Spain of course!. 4018 posts Send private message

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Goldie, yes, for non residents, and fultond, actually many of the mortgages have been hugely competitive with some of the banks.

These "bank" deals are making life very difficult for the agents at the moment as banks seem to be prioritising shifting their own stocks.

Justin



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Schools in Spain Guide | The Expat Files | Learn Spanish | Earn a living in Spain




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03 Sep 2010 16:49 by sharonw Star rating in Coin, Malaga. 281 posts Send private message

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And for us brokers too Justin!  I guess it's swings and roundabouts - if you can get a good deal on a bank property, a high percentage mortgage (and this is normally based on total price, inclusive of IVA) might be preferable to a not so good deal on the rate.   I know one lender is offering a first year rate of 3.75% then the remainder on euribor + 1.5 - not so great as there are better product rates around for an independent mortgage, but you are restricted to 60% -70% of basic purchase price. 

 



_______________________

Regards

Sharon

sharon@tmasspain.com

 www.themortgageservicegroup.com

 




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