Phase 4 - Builders mortgage

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08 Mar 2010 12:00 AM by rugby536 Star rating. 5 forum posts Send private message

We are prospective Phase 4 (Block 3) owners and we have just received an email from Calidona giving details of the builders mortgage.  Can anyone tell me why I need to know this information or is this just the company trying to drum up some mortgage business? I’m guessing that the building has reached a certain level of development such that the bank has now given them a mortgage, does anyone know if this is correct? 

I’m also wondering whether anyone on a previous phase can tell me the time period between receiving this notification and their apartment being ready?
 
Thanks



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08 Mar 2010 2:04 PM by pwilson Star rating. 42 forum posts Send private message

The builder's banks guarantee the mortgages on new developments. You will have recieved their offer - the interest charges are normally higher than you would expect to find if you shop around but you will save some of the taxes and notary charges if you take out this mortgage. Normally the higher monthly charges outway the early tax savings but it is worth reviewing.

It took approx 2 months for ours to be ready completion after we recieved the builder mortgage offer so I would start making your comparisons now




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08 Mar 2010 2:28 PM by erinjake1 Star rating. 61 forum posts Send private message

 The builders mortgage offers you significant savings on an ordinary mortgage and also has the benefit of already having a valuation on the property so there does not need to be a further valuation on completion so you are rest assured that you will get the maximum borrowing that you need less your deposit. It would probably be with Banco de Valencia and they are open to negotiation on their rate. We completed on Phase 3 in November and are on an interest only rate for 1 year of 3% which then reverts to repayment. It is currently €550 per month which will go up to around €1000 next year.Ouch!

You will still have to pay an arrangement fee, lower notary and land reg fees which does add up, i think on €214,000 we paid around 8500€, you will also need a mortgage protector and home insurance which is around 200€. Roda's financial advisor will be able to give you an idea of rates and fees, just ask the sales office to get her to contact you with details. She is very helpful, you need to send her all the supporting documents like tax returns, P60, statements, credit report etc and she gets a decision from the bank for you.

The Brisa's are looking really good when were over in February there were loads of builders on site plastering and putting in windows. The space looks amazing, we are really disappointed that we had to transfer from Block 11 as this will not be built now and completed on phase 3 instead which is a lovely phase also.

Word of warning, it has taken them 4 months to snag it and they put the furniture in without doing this first. The gas was not connected when we came over and the air con didn't work, they had not cleaned it either which should be done on completion. We have had to ring them constantly to sort these problems and staff seem to be getting the sack so the Director is trying to do 4 peoples jobs!




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