Yes it is. Many banks have clamped down and some resufing to lend to non-residents, valuations being revised and some are not dealing with local brokers but request power of attorney to collect the paperwork themselves
This is all at the directive of the Bank of Spain who underwrites all the banks.
Also it is illegal (always has been but now enforced) to borrow more than 100% of the purchase contract price – so costs cannot actaully be included in the purchase. Notaries are asking for the contracts to lodge in case of reviews
Some banks have been hit very heavily with dodgy paperwork and are conducting internal reveiws, so more local arrests to come meethinks!
Answer is use a solid mortgage broker who knows his stuff and wont do anything dodgy – they also can sway banks legally in favour of the client and offer proper advice! And yes I am lucky to finally have found the one decent one I can trust knowing my clients will get the best possible advice wherever they buy in Spain!