75% Mortgage

Hi,

Having spent a long time sorting our mortgage out, and having a number of valuations/appeals, we made a decision last week to go with an offer from Bancaja. They have now come back and said, they will now only offer 70% of valuation despite the othe offer only being around 3 weeks ago! This is despite us agreeing to pay an insurance to go above the 70% along with a slightly increase interest rate. They also suggest they may not even be able to do the 70%!!!

Basically, because of the lower than expected valuation, 70% isnt really enough. We need around about 73/74% of valuation. Thats of course, unless we getter a better valuation, but having already forked out for two we dont really want to be throwing good money after bad on more valuations.

So, was just wondering if any banks are still doing above 70% mortgages at reasonable rates?

We have been working on sorting this for months and months, and have completion set at around end of April! Its so annoying.

Cheers

 Spam post or abuse? Please let us know

Yes Superdon there are still banks offering above 70% of valuation. How long that will remain the case remains to be seen but if its off plan we have at least 3 lenders that will go to 80% of valuation - there is a relationship to purchase price as well but usually that isnt impacted. Bancaja actually withdrew their 80% of value product about 3 months ago (at least I think it was around about then anyway). Terms depend on client circumstances but also how you want the mortgage to work but I dont think the rates particularly unreasonable but again depends on status and how you want the mortgage structured.

 Spam post or abuse? Please let us know

Well, bancaja were offering us around 75% at Euribor +0.8%, with 2 year interest only, 1% opening comission, very cheap life insurance (30 Euro a year), a one off insurance (to cover the over 70% mortgage) of around 650 Euro, and a reduced initial 6 month rate over 30 years.

Thats the type of thing we are looking for really.  Any suggestions on who I could approach?

 Spam post or abuse? Please let us know

Guess the best person to speak to is a broker

 Spam post or abuse? Please let us know

It has been suggested to me that my answer was somewhat abrupt so if that is the case I apologise. There are deals out there at up to 80% of value still but some of them are only available through brokers and not necessarily on general release - we as a broker will never quote a client without going through the same "know your client" procedure as is required in the UK under the Financial Services Authority - that way we do not recommend a product to a client that we are not confident that we can get for them.

 Spam post or abuse? Please let us know

No worries. It seems at the moment, the offers we have are probably the best we can get, with the conditions we want.

 Spam post or abuse? Please let us know

Superdon,

whilst i have an IFA business in the UK and provide spanish mortgages only for non residents, Pat who is well known to me ,has been living out there for a fair few years now and could almost certainly better the deal.

A lot of it boils down to pure mathematics ie: one has some spare cash but wants say 75% loan to purchase price-if this is available over say a 20 year period at say 5.5% bearing in mind that if anything over that period interest rates will fall, then in my opinion it is better to take the loan for the extra 5% as one could ultimately receive greater than 5.5% in interest elsewhere.

good luck

shaun

 Spam post or abuse? Please let us know

Thanks Shaun. Replied by PM, but for the record, was quite easily able to beat Smileys offers with a bit of leg work and saves the hefty 'arrangement and administration' fees.

 Spam post or abuse? Please let us know

But then you could have got 80% of valuation up to 90% of purchase price with 3 years interest only and no MIG premium nor compulsory life cover

 Spam post or abuse? Please let us know

Got a few details of 80% mortgages now, with no life cover or MIG, but the interest rate puts us off.

I think we are going to stick at the 70% level, find the cash and get the better terms.

 Spam post or abuse? Please let us know

Better or worse than Euribor plus 1% - possibly subject to client profile Euribor plus 0.85% - but that only gets confirmed on client assessment.

 Spam post or abuse? Please let us know

Or could have got 80% of valuation up to 100% of purchase price with 5-10 years Interest Only, no MIG nor compusory Life cover.     OR even same product but 70% LTV Repayment @ E + 0.75  !

It is VERY difficult to get all requirements in 1 product!!!! 

 

 Spam post or abuse? Please let us know

Blimey we could go on and on between us!!

 Spam post or abuse? Please let us know

"It is VERY difficult to get all requirements in 1 product!!!!"

Indeed Sharon. If only we could get the 75% over 30 years on that kind of deal, with interest around +0.75% we'd be sorted.

 Spam post or abuse? Please let us know

Superdon,  seems Bancaja have nearest damnit, for you - I would grab it in case anything changes!

Best Wishes,

  

 Spam post or abuse? Please let us know

Hi, SuperDon.  Best of Luck with the mortgage - I really hope all the boxes get ticked for you and great if you can save wherever you can.  I expect that if you are trying to maximise the mortgage sum, then unless you are a very experienced....or lucky... and with good contacts, then this will prove difficult, particularly in the present credit climate. 

I can only share our clans experiences (we are in Ireland) in trying to source and maximise mortgage products ourselves in Spain.  At the outset, one of our group (me !), naively, was of the view that if the products are in the market, then surely I can tap into them myself and save on the brokers hefty fee.  Despite objections from others, I ploughed in - no luck directly with Banks (that hurt); then I presented our case to a low fee broker ; rejected by Banks within 48 hours (serious hurt and now worried that we would not qualify).  In the lead up, thankfully we had come across EOS and had been observing others postings and recommendations.  Based on these, one of us (the brother) was of the opposing view - that a fee to a good broker, especially in an overseas situation, would repay itself and that the assistance & advice of a good broker would be helpful with even more than the mortgage : we had no confidence in the agent, the (agent) recommended lawyer or agent recommended broker. 

Anyway, this was the view he had formed from EOS re Smiley (yeah - penname inspires such confidence).   Sorry to go on a bit, but from first contact, the straight-talking Smiley painted a very clear picture for us, going well beyond the brokers remit - and on the mortgage side he got the mortgage approval for us, with properly presented case.  Based on our dealings with him, we would highly recommend him, as many others on EOS have: and gladly pay the, at the end of the day, not-so-hefty broker fee.  This for access to products, processing the mortgage paperwork etc. (not easy for most), but more importantly, the sound advice and guidance.

And wait for this.....for a whole number of reasons, we did not complete on the purchase (matter still ongoing)....so mortgage was not drawn down.....but, so much learning ; it is a minefield.  Priceless lessons !  

Thanks, Smiley & keep up the good work.

Hope things work out for you, SuperDon.

 

 

 

 

 

 

        

 

 

 

 Spam post or abuse? Please let us know

Totally understand Denis, but an approx 300 Euro, plus 1% arrangement fee on top of the already huges Spanish mortgage set up costs and opening comission really does hurt. I guess you get what you pay for, and can understand that though.

 Spam post or abuse? Please let us know

Thank you for the vote of confidence Denis and good luck with the ongoing with ??? - guess I would have to concur Superdon that you do get what you pay for

 Spam post or abuse? Please let us know

We have a 44% in debt ratioaccording to our broker. we need to borrow nearly 79 % LTV . ( we can afford to reduce this if necessary to 70% but with the exchange rate being so poor at moment, our broker says not worth it)

He says only one deal suitable for us eurobor +1.35 interest only for 10 years ( which not too interested in as long as monthly payments arent any higher than 800euro per month ie longer term would still be fine ) repayment for remaining 20 years, with 1.25% set up fee.

I dont think this seems very good. I have little faith in my broker its the same old story money up front and no communication other than being assured this is the only deal for us! 

Any ideas?

 Spam post or abuse? Please let us know

g9lou,

This is part of my post, in answer to your post dtd 14th March:

The majority of  lenders caculate 30% debt/income ratio, there are ONLY a COUPLE that will go higher, but it depends on indivdual circumstances whether they qualify. There are a handful of Interest Only products either available on full term, up to 40 years or part/part anything from 1 to 15 years.  -

Although I do not know your individual circumstancs, based on your posts as I said before, this is NOT the only option open to you. In fact it is important to note that this particular lender has a DTI of 38% in the Interest Only period and 45% in the Repayment period, based on gross income.  

It seems to me that your broker does not have an alternative option for you and I find it inexcusable that the communication is not there, you are paying them for a service.   I strongly recommend you seek advice elsewhere and this should cost nothing!     

As you have paid 'money up front' to your broker I am presuming you have a Decision in Principal from this lender?

Please do not lose faith with all brokers, there are many of us that really do care and want to help!

 

  

 Spam post or abuse? Please let us know