Morgage Fees Urgent Help required !

Hi,

after buying a 3 bed property in October with CAM with a 20% deposit and 80% morgage I have just had a tentative morgage offer from Sabadel and some of the fees seem astronomical and although terms offered with CAM like 1.5% morgage over Euribor they are also wanting 1800 euro for Notary land registry and 1400 euro insurance all up front. And to top it all sabadel will only lend me 70% as this they says is max for non-residents. Also if I pull out even though so much as changed I will lose my 10% deposit!

Could anybody take a look at the figures below and shed any light? any help greatly appreciated. Thanks.

HOUSE PRICE: 54,800 Euros
MORTGAGE: 38,360 Euros
TERM: 20 Years
YEAR ONE: 4% Interest
YEAR TWO & Following years: Euribor Rate + 2%
MIN INT: 4%
MAX INT: 12%
YEAR ONE - MONTHLY MORTGAGE PYT APPROX: 232.46 Euros

Mortgage Expenses - Total: 9,015 Euros:
Opening Commission - 350 Euros
Notary & Land Registry - 1,800 Euros
Gestoria - 600 Euros
House Insurance - 300 Euros
Life Insurance - 1,400 Euros
Taxes (10%) - 3,836 Euros
Taxes (Mortgage) - 729 Euros

Thanks Darren.

Hi Darren (great name!)

It appears there is a cap & collar on your mortgage, meaning it wont go below 4% and wont go over 12%. 

Its a shame the collar is in place as Euribos is around 0.543% right now, meaning you would only be paying 2.043% had it not been collared.

I cant see rates increasing much in the short term, I would consider talking to another bank who would offer a simliar deal but without the collar.

As a comparisan I have 1.1% over Euribor, so I pay less than 2%, but I am also with CAM/Sabadel. 

Unless they are all now placing a minimum rate on new business?

As for the rest of the fees, I paid about 11% as Pat says....> However that was 11% of 126K Euros, so think yourself lucky!

If they banks dont do you a decent deal you can buy my apartment and I will only charge you an interest rate of 3.99%?

 I assume you are getting a 110% finance deal are you?? otherwise could you look at financing it in the uk the way the prices are at the min you could get the majority of the purchase price on an unsecured loan lol.

As Darren W says whatever it is  it is x % of a lot less than a lot of people paid and in the long run you have a very good investment

No the deal is 30% deposit and 70% mortgage.

Yes I appreciate it is a good price but the other fees like life assurance etc look ridiculous.

Darren.

Hi Darren,

We completed in December, on a two bed with no mortgage, charges were as below.  We figured it was better to finance out of UK funds rather than mortgage in Spain, as you say the fees seemed to keep mounting up.  What I would say is I think your property IVA tax should only be 7-8% as these were treated as resales from the bank.

Tax: 2861.25

Lawyer: 800

Notary / Land Reg: 1386.75

House/buildings insurance: 171 (could have paid ML 50 and used the resort buildings insurance but wanted to be safe rather than sorry).

Cheers,

Craig

Hi.

My girlfriend and I recently completed on a purchase of a Villa Jana. We raised the finance with a Spanish bank at favourable rates compared to what would have been on offer in the UK.  The downside is the fees.

I'm a mortgage broker here in the UK and have contacts in Spain, if you would like to get in touch I would be happy to help in any way I can.

Mobile 07984169598  Land line  0845 862 4351

Kind regards

Craig