Ralita, from my own experience I have found the banks becoming a little more flexible again.
I think the panic has subsided as the banks realise that selling mortgages is their business, or at least a large part of it.
The talk of 60% LTV for non res applicants is untrue as I just got a client 80% with a decent experian report. In reality banks are very welcoming of clients with honest and normal income proof.
The UK banks in Spain, particularly Barclays are being reasonable and realistic regarding applications, closely followed by Bankinter.
If anyone is planning on a mortgage application, my advice would be to provide
1) Experian report (if non res)
2) Good genuine proof of income.
3) A good reference from UK bank (if non res)
Another anaomalie is that banks are varying from branch to branch.
Use a large town or city branch for your application, they usually have go-ahead managers who can push the application if a bit iffy, as head offices listen to good managers.
Small provincial and village branches usually have a young inexperienced manager or one on the way down and they have little influence on the application.
I also suggest applicants use a broker, it may cost 1% more in set-up fees but often a good broker can strip away the associated products that banks usually insist upon, such as Life insurance, employment protection etc.
I got a client a mortgage last week for 180.000€ which could have carried 3,750€ worth of bank add-ons, instead he paid 1% extra set-up fee 1,800€ and so saved 1,950€ that he would have paid in extras by going directly to the bank.
