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