New mortgages clampdown?

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This topic contains 7 replies, has 4 voices, and was last updated by Profile photo of mike mike 7 years, 7 months ago.

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  • #54966
    Profile photo of Anonymous
    Anonymous
    Participant

    Yesterday I was told by two banks that they will now only lend 50% of purchase price on new mortgages.

    I guess that the banks are taking a new, even more cautious approach to the market here. Do they know something that we don’t?

    If this is across the board, I can only expect that property prices will drop faster still now. Kinda good news for buyers eventually, but I guess it will mean we hold back for at least another 6 months.

    Maybe it’s time to give up on Spain 😯

  • #92004
    Profile photo of Anonymous
    Anonymous
    Participant

    @El anciano wrote:

    Yesterday I was told by two banks that they will now only lend 50% of purchase price on new mortgages.

    I guess that the banks are taking a new, even more cautious approach to the market here. Do they know something that we don’t?

    If this is across the board, I can only expect that property prices will drop faster still now. Kinda good news for buyers eventually, but I guess it will mean we hold back for at least another 6 months.

    Maybe it’s time to give up on Spain 😯

    As you can see from one of the threads, some developers are taking 50% off.
    Some banks like Bank Catalunia talkes 30% of their repossesed property.

    Therefore the banks are trying to protect themselves and offer only 50% mortgages because they expect a possible 50% decrease in price.

    You have another 6 months to keep searching…

    Why would you give up Spain (considering that you like the country…)?

  • #92006
    Profile photo of Anonymous
    Anonymous
    Participant

    That makes sense, except that now it is 50% of purchase price (not valuation). So, no matter how good a deal you strike, the banks are still only in for 50%. Previously, I had been told the rustic properties were an issue, and these would be 50% (if you could find a lender), but this appears to be all property!

    Why give up on Spain? Because I want a permanent home, and the turmoil & BS in the property market has made this extremely difficult for us to achieve for a few years now. I’m getting a bit fed up parking my life while the world gets in touch with reality. It seems like every time we think we are getting close, there is a new hurdle put in our way, There are other countries that are similarly attractive to me, but without as much of this property crap. I dunno what we will do at this point, but we are considering just giving up here. Maybe time to polish up my French 🙂

  • #92008
    Profile photo of Anonymous
    Anonymous
    Participant

    @El anciano wrote:

    That makes sense, except that now it is 50% of purchase price (not valuation). So, no matter how good a deal you strike, the banks are still only in for 50%. Previously, I had been told the rustic properties were an issue, and these would be 50% (if you could find a lender), but this appears to be all property!

    Why give up on Spain? Because I want a permanent home, and the turmoil & BS in the property market has made this extremely difficult for us to achieve for a few years now. I’m getting a bit fed up parking my life while the world gets in touch with reality. It seems like every time we think we are getting close, there is a new hurdle put in our way, There are other countries that are similarly attractive to me, but without as much of this property crap. I dunno what we will do at this point, but we are considering just giving up here. Maybe time to polish up my French 🙂

    They expect that some purchases prices of May 2009 to half in the next years and do not want to be caught off-guard… They do not know how good a deal you strike, they are just afraid that they might lose money if you default…

    About France. I am following that market too and the prices are as crazy as in Spain (and the decreases are lower).

  • #92009
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    Anonymous
    Participant

    That’s what I’m picking up, So, we have already seen 30-50% reductions, and now the banks expect a further 50% below those already dramatically reduced prices. If that’s right, things are going to look very different here in the next year or two!

    The thing about France is that it seems more stable. Pricing here has been an issue for us, but as important has been the generally instabilty, corruption, unregulated (and often crooked) agents, false valuations, land grabs, not to mention the dire state of the spanish economy… France seems better in this respect, there are also other options that seem more attractive for our circumstances. I’m reluctant to move countries again, but maybe it’s time… Oh well, at least the sun is still shining

  • #92010
    Profile photo of Anonymous
    Anonymous
    Participant

    @El anciano wrote:

    The thing about France is that it seems more stable. Pricing here has been an issue for us, but as important has been the generally instabilty, corruption, unregulated (and often crooked) agents, false valuations, land grabs, not to mention the dire state of the spanish economy… France seems better in this respect, there are also other options that seem more attractive for our circumstances. I’m reluctant to move countries again, but maybe it’s time… Oh well, at least the sun is still shining

    It definitely is more stable.

    But the bubble has been there too. Apartments in the Alps area doubled the price
    between 2002-2006 which is not sustainable so there have already been 20% reductions and nobody buys.

    The advantage in Spain is the weather…

  • #92013
    Profile photo of katy
    katy
    Spectator

    Portugal?

  • #92028
    Profile photo of mike
    mike
    Participant

    @katy wrote:

    Portugal?

    Portugal interests me. Does anyone have any experience, thoughts or know of a decent forum?

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