A little video report I put together yesterday about Spanish Banks and their current lending practices. Enjoy it and if you need more information about anything to do with Spanish Mortgages or Loans and Spanish Bank Repossession Offers get in touch (See the header at the top of the page)
Showing posts with label Mortgages in Spain. Show all posts
Showing posts with label Mortgages in Spain. Show all posts
Saturday, June 27, 2009
Friday, May 01, 2009
Short Report on Spanish Banks
Rip off Merchants! Is that short enough?
Seriously last week I saw the ads for Deutsche Bank's mortgage rate at Euribor +0.27% Now this is a rather good rate so I went to talk with them. This actual offer may be valid for about a handful of people in Spain but you would have to jump through so many hoops that it really would be a major surprise if you got any mortgage through them at all not only the headline advertised rate.
I then went to BBVA. I asked for a friend about a personal loan to pay off a credit card and have a better interest rate. They quoted me 11-12% for a personal loan. Now Euribor is currently 1.8%. I understand that the interbank rate LIBOR stands between 4-4.5% and that there is not much liquidity at that rate so in order to borrow money to lend the banks need to offer a better rate but there is liquidity at 5%. Therefore offering 11-12% interest rate is profiteering ridiculously and taking advantage of their own customers. The usual rate on a personal loan in Spain is 3% above Euribor not 10% above.
Banco Santander on the other hand were very helpful and would expect to give mortgages to non residents at Euribor plus 1.2-1.5%. That is a great deal for new mortgages as it is below LIBOR. This means they are willing to take the risk on losing a little to start up with as the usual mortgage will make money for them over 25-30 years. The CAM also came up with decent rates as did Bancaja.
What does this tell us? You need to look around for any financial product at the moment because as long as you are a decent looking client incomewise then there is finance available.
Seriously last week I saw the ads for Deutsche Bank's mortgage rate at Euribor +0.27% Now this is a rather good rate so I went to talk with them. This actual offer may be valid for about a handful of people in Spain but you would have to jump through so many hoops that it really would be a major surprise if you got any mortgage through them at all not only the headline advertised rate.
I then went to BBVA. I asked for a friend about a personal loan to pay off a credit card and have a better interest rate. They quoted me 11-12% for a personal loan. Now Euribor is currently 1.8%. I understand that the interbank rate LIBOR stands between 4-4.5% and that there is not much liquidity at that rate so in order to borrow money to lend the banks need to offer a better rate but there is liquidity at 5%. Therefore offering 11-12% interest rate is profiteering ridiculously and taking advantage of their own customers. The usual rate on a personal loan in Spain is 3% above Euribor not 10% above.
Banco Santander on the other hand were very helpful and would expect to give mortgages to non residents at Euribor plus 1.2-1.5%. That is a great deal for new mortgages as it is below LIBOR. This means they are willing to take the risk on losing a little to start up with as the usual mortgage will make money for them over 25-30 years. The CAM also came up with decent rates as did Bancaja.
What does this tell us? You need to look around for any financial product at the moment because as long as you are a decent looking client incomewise then there is finance available.
Friday, April 24, 2009
What is Deutsche Bank Playing At?
I wrote an article recently about banks in Spain and how they have increased margins between the Euribor rate (Base Rate) and the rates quoted for mortgages. So in Valencia yesterday I see that Deutsche Bank is advertising heavily that they will give you a mortgage at Euribor plus 0.27%. What are they playing at and how can they and why do they do it?
I will get back to answer this next week because the answer may well be very interesting.
I will get back to answer this next week because the answer may well be very interesting.
Friday, April 03, 2009
First Video Carcast - Mortgage Availability in Spain
Bit of a different blog entry today. I thought I would do a carcast video about mortgages in Spain. If you are going to be buying houses for sale in Spain then you need to have some finance in place usually. If you choose a property from the CAM they are financing between 80-100% of the cost on discounted properties so they could be for you. Have a look at the video and comment. Then check out the website at Valencia Property to look through some properties.
Friday, February 20, 2009
I Have Found a Bank that Will Fund You
If you want to buy a house for sale in Spain things have been difficult recently. You may have noticed that there is a bit of a credit crunch going on at the moment. This week I have been speaking to banks for clients who want to renegotiate their mortgages because they are finding it hard. The banks have had differing points of view from, let them lose the house to we will do whatever we can to help up to a point.
Today I found a bank that is still lending to non residents meaning I may not have to totally refocus the website and business model to only take cash buyers. I will keep the name under my hat but suffice to say if you are a viable client and you need a mortgage of up to 80% maximum of valuation then I may well be able to get you the finance lacking in the market at the moment. You will have to link yourself to the bank in terms of credit cards, direct debits and insurance but at least you will be able to buy the house or flat.
One caveat of course is that Euribor is currently around the 2% mark, do not expect anything less than Euribor plus 1.75%-2% as the banks themselves get their money by offering rates to investors much higher than the 2% Euribor rate. See the graph above for the lemming like jump the Euribor has taken recently.
Today I found a bank that is still lending to non residents meaning I may not have to totally refocus the website and business model to only take cash buyers. I will keep the name under my hat but suffice to say if you are a viable client and you need a mortgage of up to 80% maximum of valuation then I may well be able to get you the finance lacking in the market at the moment. You will have to link yourself to the bank in terms of credit cards, direct debits and insurance but at least you will be able to buy the house or flat.
One caveat of course is that Euribor is currently around the 2% mark, do not expect anything less than Euribor plus 1.75%-2% as the banks themselves get their money by offering rates to investors much higher than the 2% Euribor rate. See the graph above for the lemming like jump the Euribor has taken recently.
Thursday, February 19, 2009
Banks, Interest Rates, Mortgages and House Sales
I am closely working with some banks at the moment renegotiating people's loans so that they get a respite from the payments which rocketed last year and stay that way until the next revision, 12 months after the last in Spain as Trackers don't exist.
All banks in Spain generally lend money at a rate above Euribor, the European base rate. Euribor today stood at 2.08% and traditionally here banks lend at around Euribor +1. However no banks are lending as i said in my last blogs, they have no money as interbank lending has collapsed due to the lack of confidence in the market. The only funds coming into the market are coming through government guarantees on bank securities they are selling abroad backed by mortgages. Can you see where this is going? In order to sell them they are having to offer around 5%. The other source of income is from depositors' cash which they can only attract at around 4-5%. Therefore all money they are borrowing they are getting at rates well above Euribor. thus they will not lend it at Euribor plus rates or if they do the plus is now +2% or more.
What does this mean? If you have a mortgage in Spain then make use of it, remember the mortgage stays on the property not with the person here. If you are selling a house make use of the property having a mortgage on it at a good rate because that is now a major selling point. Without that mortgage it is virtually inconceivable that you can sell to anyone other than a cash buyer because the banks will not give out new mortgages. The only downside, let's see if your bank will finance the buyer, even if they have excellent credit history and a lovely high income.
All banks in Spain generally lend money at a rate above Euribor, the European base rate. Euribor today stood at 2.08% and traditionally here banks lend at around Euribor +1. However no banks are lending as i said in my last blogs, they have no money as interbank lending has collapsed due to the lack of confidence in the market. The only funds coming into the market are coming through government guarantees on bank securities they are selling abroad backed by mortgages. Can you see where this is going? In order to sell them they are having to offer around 5%. The other source of income is from depositors' cash which they can only attract at around 4-5%. Therefore all money they are borrowing they are getting at rates well above Euribor. thus they will not lend it at Euribor plus rates or if they do the plus is now +2% or more.
What does this mean? If you have a mortgage in Spain then make use of it, remember the mortgage stays on the property not with the person here. If you are selling a house make use of the property having a mortgage on it at a good rate because that is now a major selling point. Without that mortgage it is virtually inconceivable that you can sell to anyone other than a cash buyer because the banks will not give out new mortgages. The only downside, let's see if your bank will finance the buyer, even if they have excellent credit history and a lovely high income.
Friday, December 05, 2008
Do you want to reduce your mortgage payments?
If you are following the updates here and on our other sites you may already know that we have been negotiating for clients who want to reduce their mortgage payments with their banks. This is being very successful and we have currently reduced mortgage repayments for people between 500 and 1400 Euros per month for times ranging from 2-3 years. If you want us to get you a better deal on your mortgage in Spain then for a fixed fee we can get you a much better deal and take that pressure off you.
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