Mortgage Option

Self employment causing problems - garbage - as long as your debt to income ratio is ok it should be a benefit rather than a hinderance - more work for the broker maybe in terms of getting documents for approval but should add weight to the application

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thanks for the advise people. i will call and make some enquiries. maybe mri knew what property was really worth? I am sorry now that i didn't in fact declare my self employment income as i own a very profitable cafe and whilst it is not our main income it provides a healthy one for me and it seems we have lost a large part of our income on our application.  i take on board the valuation and that the fact it is lower than expected is not the banks fault.  it just seems a shame that we are all set to move in and suddenly blowing a whole in savings of another 23,000.  Such is life.

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Suzanne

We bought through MRI & used CFP initially before moving to the other broker. CFP had our paperwork for 4 months before they questioned any of the information provided.

We also had problems with our valuation as the initial figure came through at 192,000 euros while the next one came through at 172,000 euros (7,000 less than the purchase price. After sticking to our guns we persuaded the bank to review the valuation & it was increased to 187,000. This was against a projected figure from MRI of 210,000 euros.

The highest valuation came from Bancaja but the amount they would agree to lend us was not as much as Caja Murcia, where we finally ended up.

Noreen

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We are due to complete with GE on a 80% LTV product (should've been last week, but don't go there!!)

GE ask you to provide details of a valuer that they can instruct, which should work in your favour. Wth us though, the builders would not give any valuers details and we had to use a company plucked out of the air by GE. Was the valuation company Compañía Hispania de Tasaciones y Valoraciones, S.A.? If so, they undervaslued our property too. You can commission another valuation, but then it has to go to the underwriters again and apparently GE will normally always go with the original valuation.

Mark

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i have had many problems with my purchase and getting to the final hurdle and starting to have problems with the financial side is tipping me over the edge. it really is.  so now i don't know what to do.  whether to just complete with what we've been offered or to pursue it further. Thanks for the input.  i'll ask cfp if i can have an individual valuation done arranged by myself. 

One other point is that GE did not open me an account with their bank even though they accepted our mortgage.  But we have opened one with sol bank last year whilst we were out in spain and have about 2000 euros in that, it might be an idea to put in an application with them and see what happens.  If we go direct to Sol Bank with an application how long might it take to get an offer as we are due to complete in a months time?

suzanne

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When we applied to Caja Murcia the full agreement came through in 48 hours then a further week for the valuation to be done. Once we accepted the terms of the mortgage offer following the valuation, we could have completed within a week.

Although that would have been dependent on the solicitor, the bank & the notary all being available within those timescales.

Noreen

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GE aren't a bank, they are a finance house. As such, they don't have branches and the like, just offices to process applications and receive monies. You will need to have your own 3rd party bank account, there is no stipulation for any one in particular.

I am just going to PM you with an email address for a contact at GE.

Mark

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A British Bank offers ECB + 1.35, ECB (European Central Bank) rate is currently at 4% and a Spanish bank offers at Euribor (yearly) + 0.75. Which one you choose?

Any opnion welcomed.

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The ECB rate is a daily variable linked to the repo market (a financial instrument used betweeb prime banks) the Euribor is an annual variable (rolling one year fixed rate). I guess its a question of whether you want a a rate that can flucutate almost daily (in relaity it only gets adjusted monthly) or a rate that offers 12 months stability at a time - annual Euribor currently 4.64 although this is likely to drop. You need to also look at all the other terms and conditions between the two products and in fact it is the offshore arm of the British bank. One will record on your UK credit file the other not.

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Smiley,

Many thanks. Ideally we would like to keep what happens in Spain in Spain i.e. not touch our UK home at all (we are borrowing agaist our earning rather than remortgage our UK home).

The Spainish bank comes with low set up fee since it is developer appointed mortgage provider while British bank requires to insurance our apartment at 110% of the value. I have no clue why.

Can you let me know where you look at for Euribor rate since when I look at Euribor.org today the 12m Euribor is at 4.769.

Many thanks. So glad we have person/people like you on the forum with all the expertise.

 

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Euribor rate may be 4.769 today but the rate used for mortgage purposes is set at the start of the mont and is actually a slightly different benchmark to the one you see published - ask the GB bank if you can insure the property elsewhere if that is what you want - not sure what you mean about your UK home as the loan is always going to be secured on the Spanish property - what I meant was that the loan from the British bank (to use your description) will be recorded on your UK Experian file and with any of the UK credit reference agencies.

If the developers mortgage suits you, you are probably better to take it as you will save money on start up costs but please ensure you know all the terms and conditions relating to it and that they suit you for the life of the mortgage - remortagge here is very very expensive - typically 5% of the mortgage - and a lot more complicated.

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Smiley,

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Not sure what you mean - anything anywhere in the world involved in buying or selling always invloves cost - yes the Spanish are laid back but nothing to do with costs of things - they not so keen on Brits coming along and pushing property prices up by paying silly money thereby making property out of their reach - Andalucia (Costa del Sol) average earnings  are about 9000€ per annnum pre tax (£6000 more or less). Yes it cots a lot to buy in Spain with affiliated taxes etc but the average guy in the street wont see direct benefit from that - he simply sees it as harder to get his foot on the property ladder as non residents have pushed prices beyond his reach - to be hionest you should consider yourself fortunate you can get a mortgage in Spain as a non resident - in that respect we are light years ahead of the UK as non residents cannot borrow for mortgage purposes in the UK.In fact in other European countries it is even more costly than Spain - be thankful you dont have VAT in the UK.

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Had an offer today with the following terms...

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