IT’S been exactly 10 years this month since the Lehman Brothers collapse in the US kickstarted the global economic crash which decimated Spain’s property market. And boy have we come a long way.
After six years of real struggle the market in Spain finally began to get its confidence back from 2014 onwards, with prices and purchases increasing at a healthy rate ever since.
Prices were 2.6% higher across Spain in the second quarter of this year compared to the same period last year, the latest figures have revealed – the most recent sign of the country’s robust recovery.
The national property price index is now 23.9% higher than it was four years ago, when the property market had just begun to turn a corner.
Meanwhile, the latest mortgage figures show that this April alone there was a 34% increase in loan approvals in Spain, while the average mortgage value rose by 9.1% to €123,256.
It means banks lent €3.54 billion, a 46.5% increase on the same month last year.
While Madrid – the country’s hottest market – led the pack with 6,018 mortgage approvals, Andalucia came in a strong second with 5,154.
This steady and impressive recovery makes Spain an attractive investment, especially if you’re suffering from the post-summer blues and need a hot summer home to escape back to.
But if you are looking to invest, it’s important to remember how crucial mortgage brokers can be.
With established links to all the major Spanish lenders the Finance Bureau acts as a go-between for the client and the bank – but it is important to remember that the broker is not connected to any one bank – and works to find the buyer the best deal available across the whole of the market.
It is essential to have someone in your corner to highlight and then minimise the impact of any hidden fees or compulsory add-ons tucked away in the small print. Also to ensure you get the best possible mortgage rate to suit your needs and circumstances.
One of the biggest pitfalls can be ‘trap-related products’ that often get hidden in the small print. These additional products get attached to your mortgage and usually include insurance policies.
Using a broker will save both time and money as they will be looking out for these hidden add-ons and will always look for ways to lessen their impact.
But the best way to ensure a good mortgage that does not hide anything in the fine print is to solicit the help of a mortgage broker.
When it comes to picking a mortgage, you must get it right on the first try as due to the relatively high transaction costs, it is virtually impossible to reverse.
To contact Tancrede for all your mortgaging needs call: 666 709 743 or
for insurance queries call: 951 203 540 Email: [email protected]
The Finance Bureau Centro Commercial Guadalmina, 2nOffice No. 7 Guadalmina, 29670