Mortgages

Mortgage Pre-approvals

One point our mortgage advisers would like to stress is the importance of getting clients to start the mortgage process early, ideally before coming to Spain. Many clients don’t understand the buying process and that when their offer is accepted on a property, they may be required to pay a 10% non-refundable deposit within a short period of time. This can often put unnecessary stress on the bank, solicitor, mortgage adviser and client when a mortgage is involved.

It is advisable to get the mortgage pre-approved as soon as possible. This is also an attractive bargaining tool for the client as the vendor is much more likely to offer better buying conditions and possibly a better price if a buyer comes with a mortgage approval or pre-approval well underway. It can also make for a speedier sale which can only be a good thing for everyone.
 

 
 
How do we think the Brexit will afferct Spanish house buying in general.
Whilst it may be too soon to tell, we think that overall demand for Spanish property from overseas buyers won't be greatly affected. For most people, buying in Spain is a lifestyle choice and the alternatives, such as buying in countries like Turkey or Greece aren't an option for them. We may even see an increase in the number of UK nationals choosing to emigrate to Spain from the UK.
 
From Mortgage Direct's experience so far since the result was announced, we have seen a very small decrease in mortgage enquiries from British clients. Just one existing client, who was ready to purchase, has pulled out all together, which is mainly due to the exchange rate movement. We have also had two potential clients who have e-mailed us to confirm that they are even more determined to move to Spain as fiscal residents now that the UK has voted out (even if their UK homes have fallen in value by the time they come to sell them and their spending capacity to buy in Spain is reduced). Finally, a UK client who completed last month has got in touch today to seek the possibilities of a 2nd purchase with a 2nd mortgage here in Spain.
 
There have been several events or crises in the last 10 years that were expected to result in drastically reduced numbers of British and foreign buyers. Focussing on British buyers once more, we must remember that it was only 3 years ago that the exchange rate was 1.15 Pounds to the Euro and at the end of 2008 the two currencies were close to equal value but still, Brits continued to buy in Spain despite the nervousness at the time that they wouldn't. On the contrary, the numbers have been increasing steadily over time.
 
So, the next few years are certainly going to be interesting both politically and economically. Whilst we realise that many of our clients will be nervous about buying in Spain, we also believe whilst it may be too soon to tell, we think that overall demand for Spanish property from overseas buyers won't be greatly affected. For most people, buying in Spain is a lifestyle choice and the alternatives, such as buying in countries like Turkey or Greece aren't an option for them. We may even see an increase in the number of UK nationals choosing to emigrate to Spain from the UK.
 
From Mortgage Direct's experience so far since the result was announced, we have seen a very small decrease in mortgage enquiries from British clients. Just one existing client, who was ready to purchase, has pulled out all together, which is mainly due to the exchange rate movement. We have also had two potential clients who have e-mailed us to confirm that they are even more determined to move to Spain as fiscal residents now that the UK has voted out (even if their UK homes have fallen in value by the time they come to sell them and their spending capacity to buy in Spain is reduced). Finally, a UK client who completed last month has got in touch today to seek the possibilities of a 2nd purchase with a 2nd mortgage here in Spain.
 
So, the next few years are certainly going to be interesting both politically and economically. Whilst we realise that many of our clients will be nervous about buying in Spain, we also believe that the vast majority will still pursue their dream of buying properties here. Property prices are very low, mortgage interest rates look set to remain low for an extended period and Spain remains the most popular destination for British tourists and second-home buyers.

info@spanishprimeproperty.com