For those that are currently buying in Spain and will make the final payment with a mortgage here is a situation that has happened to my clients this week.
The bank in Spain (BankInter) agreed their mortage and gave them an offer in May this year. They bank had all their P60’s, payslips etc and were happy with their incomes. So they made their reservation and made their payment of 30% of the purchase price. The property is a 3 bed villa.
They were due to sign today, but on Friday last week the bank decided to withdraw their offer and make a new offer of 50,000 Euros less.
The have a yearly after tax income of 57,000 Euros and were borrowing 200,000. This is the first time in all the years I have worked in Spain that a bank has withdrawn an offer.
We have managed to get another bank (CAM) to agree the mortgage but this has only been done after they did a UK credit check. This is also the first time I have seen a Spanish bank run a UK credit check. They wanted to see all the couples borrowings in the UK including taking into account any morgtage here. Fortunately they dont have a mortgage in the UK so the bank will lend the full amount.
So I would urge anyone that is buying with a mortgage as the final payment to contact your sales agent or the bank and check that they will still lend the money.
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