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Mortgage lending in Spain is down 47% from last year, which was dire too.
In my situation, it is because the banks are offering me truly awful terms: Euribor +1.7% BUT a minimum rate of 3.75% (after the initial year of 3.9%), pre-payment penalties, limited to 20 years term (partner is 42 years old), 650 euros/year of required life insurance (or the rate goes up). I should add that this is with 30% paid up-front (plus paying the 12% costs in cash) and my credit record is PERFECT and I have a more-than-sufficient salary (5-6 times average in Spain). The good news is that if this is the only mortgage available, it will force me to find a creative solution, which is what I should have been doing from the start.
No wonder there are reports stating that rents are starting to rise, after a long time falling.
Here in the States, demand for rental apartments increases and rents go up when people lose their homes to banks.
Now that the pound is appreciating against the Euro, won’t there be increased interest from UK buyers?
I can’t speak for the UK, but for me, it has been ridiculously difficult to purchase anything: A non-responsive banking system, sellers who still believe that it is a ‘sellers market,’ a culture that allows for breaking appointments moments before the scheduled time and a healthy level of bureaucracy make it too difficult to purchase anything for those who are not truly motivated.