One to one spanish tuition - appreciate any views on this

Hi, Does anyone have any details on the Builder's Mortgage (subrogation) that's being offered by the builders? We're wondering if it's better than getting a normal mortgage? Also, has anyone else had experience with CFP brokers in Mojacar?

Surtech, CFP (Capital Financial Partners) are McCanthony Realtys mortgage broking arm. Having been advised by previous clients they seem to run a mortgage club where you join and pay an annual fee to be a member. I am not sure what this includes but questionable why anyone would need an annual mortgage facility!    Finance for your Spanish property should be arranged once, having found the right product thats suits your criteria and requirements, it is very important to get it right as re mortgaging in Spain is very costly, IRO 5%.

If you are keeping all services under '1 hat' i.e. purchasing, conveyancing, financing, I strongly advise that this creates a conflict of interest and you cannot be sure that all parties will act in your best interests.

  

Sharon, Thank you for your reply. We signed up to CFP over a year ago, so feel that it is up to them to get us the best mortgage. It's proving difficult though (and frustrating) as our circumstances are a bit different, living and working in Kenya. By the way, please would you confirm that Self-Certification mortgages are no longer available? And if you could throw some light on 'Subrogation' mortgages from Builders, we would appreciate it very much.

Subrogation means taking over a mortgage, keeping the same conditions.  if you are buying from a developer then it means taking the mortgage that they already have in place and the interest rate and term will be be as what is on offer. The conditions cannot be changed.     By doing this fees and taxes are lower, e.g. there is no valuation fee, no stamp duty to pay on the loan amount, notary and registry fees are halved and instead of paying the bank opening fee there is the subrogation fee to pay and this is a difference of 0.5% (normally bank commission is generally 1%).

I agree that if you have appointed a company to arrange your mortgage they should find the best product, for your circumstances and requirements, having discussed this at length with you.   I have seen it mentioned that CFP have a limited amount of lenders on their panel so it may be the case that they cannot offer you the best mortgage.  If you have been living and working in Kenya for some time therefore do not have a credit history in the UK then is it going to be more difficult for you as just about every lender will carry out a credit check on applicants to see what financial commitments they have and how they are paid and this assists them in determining whether the clients meet with their criteria. In fact criteria has got a lot tighter now as there are so many repossesions occuring due to initial oversight on affordability.

There is actually still a Self Cert product available in Spain BUT it is to a max of 50% LTV and limited to €120,000 euros.

Hope all above helps!

 

     

Sharon, Thank you once again, you have been so helpful in explaining things. We'll hang in there for a bit longer but may be forced to come to you for help and further advice. It's such a nightmare!