We are looking for a mortgage on a property in Costa Almeria. We already have an in principle agreement with Barclays at Euribor +1.5% (less fees as my wife is staff) which we have been told is a lot. During our trip last week, we were told that we could see a mortgage advisor (obviously not independent but it would have been a start) but we never did. We have managed to get a hold of the advisor to be told the fee is €650 which seems an awful lot compared to the UK where the advisor either gets a “kickback” from the bank/ building society or fees are about £300. We also need to ask them whether it is afee for just looking or payable on arrangement/ completion.
Does anyone have any recommendations please? (PM replies if inappropriate)
Recommend you don’t use a broker at all. In Spain they take your (substantial) fee and the kick-back from the banks, also you still may not get the best mortgage for you.
Hmmm interesting. Our solicitor is also looking at mortgages for us. Is there any particular bank that is better than the rest or offering a more competitive deal?
A mortgage brokers takes a fee from the applicant and a commission from the respective Bank. In UK as well as in Spain. The broker in theory has to get the best deal for you in practise this does not happen neither in UK or Spain.
In UK a broker has access to hundreds of lenders due to a very mature/competative market. Only a kneive borrower ends up paying the broker or if they have a bad credit etc and a specialised lender is required. However if you challange them the fee to the applicant is dropped without much resistence.
If Markfish is willing to do some leg work he should check out other banks and will be pleasently surprise as to whats on offer, specially if he is willing to get an insurance, debit card etc from the bank.
I feel that if Markfish’s wife works for a Bank, she should be aware as to what the other banks are offering. Markfish should try and subrogate the developers mortgage if he buying newbuild/offplan.
If Markfish is willing to do some leg work he should check out other banks and will be pleasently surprise as to whats on offer, specially if he is willing to get an insurance, debit card etc from the bank.
We found this out whilst at the solicitor’s. My Wife was surprised about it as this practice is illegal in the UK.
Have you asked Banco Halifax for a quote? Their rate is currently Euribor +1% for a Residential purchase. They also don’t charge a fee for transfers from UK Halifax accounts and give a pretty good exchange rate.
Plus you get full online banking facilities with them.
With your wife being staff, I would have thought you may have got a discounted rate from Barclays although it seems they are charging twice their current rate
Barclayd actually offer one of the best and most competitive mortgage ranges at the moment and are offering Euribor + 0.75% as a standard product
They will only give the Wife themortgage fee free, no discounts :(. The 0.75% is also only available on 70% where we want 80%. Still looks as though they will be the ones to use though.
Markfish: Wether it is legal in UK or not. Have you not heard of taking out a mortgage in Uk and the lender insisting that you take out a life Insurance or contents etc.
Besides you are not in UK. Its important to realise that different Country has its laws & customs and I am sure you do. While for mental stimulation its good to compare and see the merits or demerits of each. But that is where it should stand.
Can you imagine what a Spaniard will think when he/she comes to UK and find out how expensive it is to travel, buy a beer or tobacco
Recommend you don’t use a broker at all. In Spain they take your (substantial) fee and the kick-back from the banks, also you still may not get the best mortgage for you.
very true.
Go to the banks yourself or contact them. They will speak english. And the offers are getting very interesting.
The mortgage brokers charge a fee to the cilent (usually gets dropped if you say you will go to some one else ) and the the kick back that you mention is all above board as it appears on mortgage papers/ e.g offer letter which states the name of the broker and the commission they earn.
I would not call it as kick back as this how they earn their living.
However, the mortgage company or the product that the broker (IFA) advises you as suitable. one cannot ever be sure as only the broker knows what commission (kickback) lender is offering to the introducer.
A good example of this in UK the endowment miss selling in the 80’s.
On a previous post I think you said an interest only mortgage would be cheaper.
But if there are repayment mortgages around at Euribor +0.18% as opposed to 0.70% for interest only, does this mean it is cheaper to take the repayment option?
I am in the process of hunting around for a mortgage at the moment which is why I am interested.
I’m thinking of going for the Activobank (Solbank) one as they will lend up to 90%. I think the others only lend 80%.
repayment mortgage at Euribor + 0.18%. is cheaper on the face of it. They might be loading on other things.
What, I meant was that with interest only you pay less monthly as you are not paying capital. So it helps the cash flow and helps to buy all the large items that you need to set up a new home.
Hi Guys, this thread has been helpful so just wanting to say thanks!
We are looking at buying in Asturias in a few weeks and trying to figure out is it better to get a mortgage through a Spanish Bank or a UK Broker such as Mortgages4U (which seem to be very expensive as their fee is £1000 and the rates are also high).
We are heading to Asturias in Northern Spain in September so if anyone has any reccommendations on specific banks to target then the info would be really appreciated.
Try Banco Halifax. They may however not cover Asturias. When you are there just walk into the Banks.
There may be local provincil banks from Asturias. In theory they should be competative but Spain being Spain this may not be the case.
I should be careful as mortgage brokers will take your application to the lenders that provides them with a highest introduction fee. This in the short or long run will be paid by your directly/indrectly.
Save your self the fee. A bit of leg work will get you a suitable product in the process you will learn about the mortgage market in Asturias. You can write a book about mortgages in Asturias, after you have had your Fabada and the Cidra.
Whilst I agree in principle in saving yourself the fee by going direct, very few brokers are actually any good or usefull.
The one I recommend can get deals through banks due to the sheer amount of business they do and so get special rates and in some cases, awkward files whereas for example someone asset rich and cash poor would ordinarily be turned down by every bank here in Spain, finance is granted.
Also money can saved by not having to take the various life insurance policies insisted upon as well as interest rates reduced or negotiated in the clients favour
Initial advice is free – yes there is a fee but only if the mortgage is approvd and then taken. But than again if the service has been successful with a client having a smooth transaction and the best product for them, then why should there not be a payment?
Oh – and it makes a change that they know their stuff, dont promise what cannot be delivered and wont handle anything dodgy or illegal! (and yes they are based in Spain!!!!) 😀
If you’re moving anywhere near LLanes (Asturias), and looking for a UK branded bank, then there’s a Barclays in town.
In addition, Abbey (now part of Grupo Santander), will arrange a Spanish Morgage etc. through Banco Santander. For the UK, this is all run from a London office, I don’t know if they have something similar for Ireland.
In general, upfront charges are higher (a lot) on mortgages taken out with Spanish Banks, but you benefit from a lower interest rate. Also watch out for hefty additional charges / restrictions, such as capital payments, early redemption etc.
Sinead – ensure you tell them from which part of Ireland you are from, as Southern Ireland has different lending criteria. Take your passport with you to show them and have fun!
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