Banking situation in Spain

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    • #53838
      Anonymous
      Participant

      From today’s Telegraph re the banking situation in Spain
      http://tinyurl.com/32havw

    • #80493
      Anonymous
      Participant

      Fasten your seat belts this is going to be a very bumpy ride. I notice my Spanish lawyer keeps e-mailing me to remind me of his services, he obviously does not have much conveyancing work.

    • #80495
      Anonymous
      Participant

      “Mikel Echavarren, director of the property consultancy Irea, said Spain’s housing market was far weaker than the official statitics suggest, warning that prices could fall 20pc to 25pc.”

      All hell is going to break loose and they suggest a tiny 20% fall???

      Are these people living on another planet?

    • #80504
      mike
      Participant

      @ralita wrote:

      “Mikel Echavarren, director of the property consultancy Irea, said Spain’s housing market was far weaker than the official statitics suggest, warning that prices could fall 20pc to 25pc.”

      All hell is going to break loose and they suggest a tiny 20% fall???

      Are these people living on another planet?

      Bernanke has only this week accepted that there is a risk of recession in the US. I knew that 6 months ago so either he’s not telling us what he really thinks or I’m so clever that you should all bow down before me and worship me as the new incarnation of the western plains Navajo Sun God.

    • #80523
      Inez
      Participant

      Ah but Ralita, any drop is relative!

      The falls have been taking place, valuers are downvaluing by approx 15% already, so add it to 20% then that is 35% so far from last years price, not taking into account the reductions that have been happening for a couple of years!

      Then the buyers wont pay that and cannot get a mortgage anyway!!!

      As I say though it is all relative and those figures are averages not area specific.

    • #80525
      Anonymous
      Participant
      Inez wrote:
      Then the buyers wont pay that and cannot get a mortgage anyway!!!

      People pay cash?

    • #80531
      Anonymous
      Participant

      I recieved an e-mail from an agent that I knew well while we were in Spain. Extract below

      “The banks are refusing to give any money on plots, some banks are starting to refuse mortgages to non residents.. the banks are now taking into consideration UK mortgages. the *** bank are in shit street and wont give you anything basically….Property is dropping by at least 20% to stand a tiny chance of selling….agents are going bust daily……havnt sold anything in 4 months!! only our new builds keeping us going….The banks have just closed the doors and basically to borrow 100k you need 200k in the bank, I have clients who will buy but no one can get a mortgage. the property valuations have gone south….scary!!
      Anyway thats our bad news over with….weather is bloody great….boooze is bloody cheap and fags are free!!!!”

    • #80770
      Inez
      Participant

      Hi Ralita, I have had 2 buyers who paid cash – amazed me too

      Yes the banks are closing their doors. Lending criteria is becoming overstrict and many are wanting to see the deposits paid – ie no falsification of purchase contracts anymore!

      Some are doing Cirve reposts (spanish versions of experians) and also taking credit card debt into account (they dodnt do that before)

      I heard under the table that one major international lender is to raise its rates to 2.5% above Euribor shortly – effectively withdrawing from the market, and they dont have too many repos or late payers!!!

    • #80624
      Inez
      Participant

      Hi Ralita, I have had 2 buyers who paid cash – amazed me too

      Yes the banks are closing their doors. Lending criteria is becoming overstrict and many are wanting to see the deposits paid – ie no falsification of purchase contracts anymore!

      Some are doing Cirve reposts (spanish versions of experians) and also taking credit card debt into account (they dodnt do that before)

      I heard under the table that one major international lender is to raise its rates to 2.5% above Euribor shortly – effectively withdrawing from the market, and they dont have too many repos or late payers!!!

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