Columnist Tancrede de Pola

MORTGAGE approval numbers are soaring.


The latest figures show that this April alone there was a 34% increase in mortgage 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.


Spain’s sunniest region beat out Catalunya, which rounded out the top three with 4,700 mortgages approved.


It comes after data from the National Statistics Office for the first quarter of 2018 revealed there have been 134,705 property deals, an increase of 7.97% compared to the same quarter last year.


But with sales booming, 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 the bank – and works to find the buyer the best deal available.


It is essential to have someone in your corner to highlight any hidden fees or compulsory add-ons tucked away in the small print and 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.


It is important to know exactly what is attached to your mortgage. What may seem like a great rate can be soured by expensive – and sometimes unnecessary – insurance packages.


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.


And while the vast majority of banks specify the fees and commissions they charge, not all of these costs are always declared.


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.

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