By Lesley McEwan
IT is always exciting to have a change in government, but will the arrival of the PP party be a turning point for the property market?
Certainly, Spain’s Conservative party has historically been better at doing the housekeeping, but let’s be honest, Spain’s house is in such a mess, it is going to take some serious financial juggling to sort it out.
The problems are multiple. The worldwide financial crisis, the overbuilding for nearly a decade, bad press and banks who sit on their assets and refuse to lend to us poor people so we can buy a house.
The market has, quite simply, stagnated with more houses for sale than we have buyers… so something has to give if we are to get Spain moving again.
There may however be some good news on that front.
A fantastic new mortgage product landed on my desk the other day which is due for release next week.
Hopefully it will bring some relief to those desperately seeking funding for a new house purchase, buy-to-let or indeed a re-mortgage to release equity.
It is available in 10 countries including France, the UK and Spain – and in 10 different currencies.
I cannot give you the name of the lender, as it is embargoed until later this week, but the company is offering 60 per cent (loan to value) on Spanish properties, and 70 per cent if you borrow against a UK property.
It is not in our polite British nature but you have to summon up the guts
The initial offer rate is 4.25 per cent for euros (this could vary) and for an additional 20 per cent you can have interest-only or a dual currency mortgage. There is the usual one per cent opening fee.
Over the years I have been amazed at the variation in mortgage conditions which are applied by different Spanish banks.
Most people do not realise that everything is negotiable though, from the opening fee, the closing fee, the fee for paying off part of the mortgage mid term, etc, etc.
Nowadays that can mean great savings, so make sure you go through the terms and conditions before you sign and most important – haggle. I know it is not in our polite British nature but you really have to summon up the guts and do it.
I suspect this is the tip of the iceberg with many new mortgage offers arriving as the banks have to release their iron grip. so keep your eyes open and compare what is on offer.
Email Lesley at email@example.com
This must be bad news for estate agents: Today I picked up a booklet at my BBVA branch that advertises properties for sale via BBVA. They state that they have more than 22,000 (twenty two thousand) properties for sale. That’s a big portfolio by any estate agents standards. and all of these are evidently repossessed and available at heavily discounted prices.
What this article like all the others does not admit is that no Spanish property is worth buying at any price – no insulation/no fire doors/no smoke alarms/no privacy in apartment blocks/sub standard double glazing/under rated electrical wiring – it goes on and on.
And don’t forget diminishing water supplies – oh yes – desalinated water – but have you seen how much that costs!