Spanish mortgages - what you need to know

“It’s just not as easy as back home”

The fact is that it is just not as easy to get a mortgage in Spain as in the UK or Ireland - it’s vital to have the help of a specialist that knows Spain, speaks Spanish and has extensive Spanish mortgage experience.

Due to a fast changing marketplace it has become absolutely essential to hold and maintain a database of all the different mortgage products that are currently available. Not only for existing products but also for new products, which are continuously being introduced into the market. And not only do products change but new lenders are appearing offering new types of mortgages. Added to which Spanish banks have a habit of changing their mortgage criteria frequently and often without any notice. This constantly changing market is one reason why you should talk to an expert if you are to get the best advice and the right mortgage for you.

At OLG we work with brokers and more than 40 lenders to deliver the best possible service to our customers. You can of course go direct to a bank in Spain but how can you be sure of getting the best mortgage available? One bank equals limited choice and unless you can speak fluent Spanish there will inevitably be problems with communications.

Some Points to Consider:

	Spanish banks operate to different principles & view risk differently
	An initial broad ‘yes’ from a bank in Spain often doesn’t mean ‘yes’, it must be tested
	Language and culture are barriers, even when people in the bank seem to speak good English
	Local bank managers are unlikely to have authority to approve many types of mortgages
	When applications go to head office “changes to conditions” can often occur
	Property valuations are carried out completely differently from in the UK
	Some banks will lend on valuation, some take purchase price into account as well
	There are 6 main bases for interest rates in Spain, including 4 different Euribor rates so Euribor + 1% doesn’t mean one rate
	Very little information is available in writing from banks and they often change criteria during the application process
	The culture is to be helpful which often means the bank saying ‘yes it will be fine’, accepting the application and then you hear nothing until 6 weeks later the answer is ‘no’
	It is unfortunately not uncommon for banks, lawyers and some brokers to add charges when ready to complete at the notary, too late unless you risk loosing the sale

Things in Spain are never black & white but are various shades of grey ~ so it’s vital to have the help of a well resourced, experienced, specialist.