Hi my name is zero, can you help?

Hi all

Thanks to Sue and Paul for the photo's - great to see what is going on.

Has anyone investigated the mortgage offered within our contract (Caja Murcia) and how this compares to other commercial mortgages from spain or the UK.  We have had an email from Virginia of the bank who said that it would be 0.45% above eurobor (4.1% currently) with a set up charge of 0.75% and annual revision (whatever that is) of eurobor + 0.45%.  She said that there is no early redemption but total redemption would be 1% - it was a 20 year mortgage.  I have no idea whether this is competitive and am just about to start looking at the alternatives.

Does anyone know whether the normal 70% borrowing limit relates to just the purchase price or the purchase price plus IVA ?

We have spoken with Barclays who offer eurobor + 1.6%, there is a set up fee of 1% of the amount borrowed - this does not sound as good as the spanish bank - but the devil is always in the detail.

Has anyone looked at any alternatives?

In addition, on completion it looks like we must pay - IVA (part of the contract), stampy duty @ 1.53% on both the price and the amount borrowed (?), land registry fees (350 euros) and a notary fee (also 350ish euros).  We also have to pay for the connection charges.   Again has anyone looked into this in more detail?

More questions than answers I am afraid.

thanks

david

Hello David,

My name is Juan Manuel from Spain. I live in Madrid and my wife and myself are thinking on buying a 2 beds appart. in Pueblo Salinas. I can answer to all your questions...

* Conditions of euribor + 0,45 are very acceptable. I am actually paying euribor + 0,50 with La Caixa (one of the biggest and most important banks in Spain). Anyway, if you use an excel file, and simulate the french depreciation system,, you´ll see that what we call the "diferencial" affects to your monthly payment almost nothing... It is very commercial for the banks in Spain to say they have the lowest "diferencial" but the main important thing is the total period.

* Redemption: No early redemption commisions is a very good thing but you should negotiate your total redemption from 1% to 0,5%... Anyway is the money you will pay at the end of your mortgage. You have to take into account, that if you want to cancel totally your mortage you have also to pay notary and registry fees (for the cancelation of your mortgage at the Spanish Register).

* Competitive or not?: In general terms is quite competitive, but you have to take into account,, that normally is much better to "subrogate" to the initial mortgage than opening a new one even if you find others more competitive in comissions and so on...

* I do not know about Barclays.. but euribor + 1,6% sounds awesome... And a set up fee of 1% of amount borrowed is unacceptable.

* The 70% borrowin limit realtes to the total amount (purchase price plus 7% VAT.

* Registry Fees and notary fees:  These are corrected and are regulated by law.. (if someone makes you pay more for the notary fee or registry fee he can get in a very serious trouble with Fiscal authorities...). Your main calculation must be the following: ADD a 10% to the total amount and it will be ok. If they sell you something for 120000 EUROS you must think that taking into account, commissions, VAT and so on... your end payment should be 132000 more or less.

* Connection charges: Just an advice... I´ve seen in some internet pages, that they were charging 1200€ for the electrical, gas and water connection. If you say that to an spaniard, he will not stop laughing during 2 or 3 weeks.. You can do it by yourself with some phone calls and it will cost you no more than the normal price the companies charge you (200 or 300 maximum...).

¿do you know of anyone interested in selling a 2 beds appartment in Pueblo Salilnas?

Thank you and regards,

Hello David

If you haven't already, you might want to listen to "Ear on Spain".  This is a taped interview between Justin Aldridge and Patrick Robinson from Marbella Mortgages.   It is very interesting and gives you lots of infomation.

Jill Sawyer