8 Dec, 2019 @ 10:31
1 min read

Tancrede de Pola looks ahead to brighter days after a tricky 2019 for mortgages in Spain

Tancrede 332 Happy New Year

IT’S been a tumultuous time for our British clients in Spain this year, and it hasn’t been much easier for the banks.

Lenders have erred on the side of caution over the British Parliament’s failure to resolve the Brexit crisis.

This led to some banks pulling out of their 70% LTV deals in a bid to avoid the risks around Brexit-influenced fluctuations in the exchange rate.


We saw Brits that were significantly affected by the Pound plummeting to historic lows and thus feeling like they were actually paying more for their mortgage each month.

Added to the market reaction to the Brexit crisis was Spain’s new mortgage law, enacted in June.

Mortgage Law
TRICKY: This year has thrown up challenges for Brits with mortgages in Spain

Article 20 of the Real Estate Credit Act (Ley de Crédito Inmobiliario) obligates banks to operate with greater transparency.

However, the new law also made it more difficult for British buyers not in the Eurozone, especially those who are paid in a currency other than the Euro.

But as the new year beckons, there are some positive changes to mortgages in store.

For one, Banco Santander is ‘going green’, offering a new mortgage in partnership with Green Building Council Spain (GBCe).

For borrowers this means a discount of 10 basis points on base rates for homes deemed ‘sustainable’ or with an energy rating of ‘A, A +’.

It comes after the Spanish giant lowered the price of its mortgages along with BBVA, Bankia, ING and Kutxabank in November, amid an intensifying price war leading up to Christmas.

The Finance Bureau has more than 15 years’ experience in finding expats the best deal possible and making sure they’re avoiding the many pitfalls associated with buying abroad.

When it comes to buying a mortgage, getting it wrong is not an option.

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