Mortgage Regulation in Spain

So you’ve seen the home of your dreams. Either online or in the flesh as it were. You’re all excited, dreaming of the new life to come.

Perhaps its for retirement, or a holiday home to use for a few years until moving part of the year out here, or maybe its THE move.

You’ve of course done your homework. You need to borrow to buy plus also its a good idea for inheritance tax purposes, so you go to the bank.

The bank has either been recommended by your lawyer or agent OR you have just walked in off the street to one.

You tell them what you want, tell them your income and they say yes.

Back in the UK you send documents asked for, pay for a valuation and book the flight to complete the purchase. You send any other monies over all ready and go to the bank for the mortgage agreement, only to be told you cant borrow as much as you asked for, or you HAVE to take out a very expensive life insurance you don’t need in order to get the ok, or you’re totally turned down!

Shocked surprised, perhaps you cannot complete, losing you money, losing the seller a buy and also money, frustration and tears all around.

Why?

The Mortgage Industry in Spain is not regulated as it is in the UK. When you walk into a branch you could be dealing with someone employed as the teller for 2 weeks and with not a clue about their own products. They say yes as they want the business, hoping that the underwriting department can sort it out.

And it becomes a mess. Stuff of nightmares?? Yes. Does it really happen??? YES

We have had this scenario several times.

And its why we only recommend a trusted EXPERIENCED Mortgage Broker. One that mirrors the UK regulations, who has a great relationship with certain bank managers and will tell you exactly what you can get – who can also NEGOTIATE the lending rate and most of the time have the Life Policy removed, saving hundreds if not thousands of pounds.

We have found it very frustrating in the past to be at Notary when the mortgage offer is unacceptable, wasting everyone’s time.

Our recommendation is if you’re looking to buy, get the FREE advice from Marbella Mortgages – they arrange mortgages on the mainland and the islands, you get an honest appraisal as well as updates all the way through the whole process.

Don’t let the buying process cost you more, drop them a line and see what you can save

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