Self Cert Mortgages

Hello everybody!

First of all, I'm new here so a big Hello to everybody (or Hola if you prefer).

There DO exist true self-cert mortgages for non-residents in Spain. The setting is: 60% Loan-to-value, no income proof, 30 years term, interest only for the whole life of the mortgage. It's quite new and even established mortgage-brokers sometimes don't know about it. They are slightly more expensive than normal mortgages, rates start from 5.5% but a true option for people with a hard time proving their income.

If you need more information, send me a private message.

Regards,
Annette
The Banking-Lady

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Welcome to EOS kurzynski

I know nothing about mortgages in Spain, resident or non resident, as we bought our place outright.

Smiley is our resident expert in this field.

Your information will be useful to any members currently setting up a mortgage.

Hope you enjoy EOS.

Kind regards,

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This message was last edited by JeansSis on 5/18/2007.

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As I have said before can do 65% true self cert - up to 70% limited proof of income.

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This is strange smiley.  Within about 3 minutes of reading the Bankinter post this morning I had a call from Bankinter offering my company this facility, then within half an hour of the call, a Bankinter rep came in with a fancy info pack.   Can´t help thinking there must be a big push on this product.

I had read your post about the 65% of value further back in the thread so when I mentioned it to the Bankinter rep it kinda Pi**ed on her fireworks.

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Yeah Bank INters ok at 60% and it is 30 years interest only if it suits the client but as I say at 65% LTV and 4 years interest only the other produtc normally satisfies most people in this position. Again rates and start up costs are not the best in the world but if needs must and we cannot go the full status route it satisfies a need. Depends on client of course but for the self employed we have lenders with a more flexible underwriting attitude - client must be squeaky clean and have the right profile of course but we can get 70% depending on what documentation is forthcoming and overall financial background.

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Ah, its looking more hopeful all the time!  Actually 65% LTV for a true self cert sounds reasonable.  The rates are always higher because the banks say the risks are higher, but to be honest I've been told that in the UK there are no more defaults on self cert mortgages than on the ordinary kind.  Are there any maximum age restrictions?  A 30 year mortgage would take me to a very old age!

Dixie xx

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Depends on how young you are Dixie?????? Come on give it up for Smiley!! Problem with the Spanish system is that every client is assessed on their own merits as opposed to the Uk where they work the percentages. The bank of Spain has quite tight restrictions on what can and cant be done and there is a much more conservative approach to assessing risk.

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Oh I'm 54 and loving it!!  Can't wait for my pension at 60!  My current self cert (taken out last year) is only for 11 years, but I shall pay it off before then.  Can't contemplate paying out a motgage on a pension.  Mind you, if this b****** government keeps putting up the interest rates I think I'll blow all my money and insist they give me a nice place to rent.

I'm rather assuming that Spain will loosen up gradually, so by 2009 maybe the true self cert rate will be more reasonable.  I do have an impeccable credit rating and banking record!

Thanks for the advice.  All this talk is making me feel I just want to come to live in Spain NOW!

Cheers,

Dixie

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Hi Dixie the mortgage market is evolving all the time - until about 12 months ago the max self cert was 50% of value and now we have 65% true self cert. I guess we are about 10 years behind the uk but 2 years ago i would have said we were 20 years behind the uk. Who knows where we will be by 2009 but the bank of spain exerts much more influence over lender criteria here - what will be will be but new things are coming along all the time.

54 - gosh almost a bloomin teenager

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Aah Smiley, you say the sweetest things!!

Dixie

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Sweetness is my middle name

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I have heard that due to the finacial problems in America that it has had an effect on self-cert mortgages and some have been withdrawn and replaced with higher interest rate products. Can anyone shed light on what is happening.

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Where are you talking about - the US or Spain.

Certain lenders in Spain have adjusted their rates on some of their self cert products according to the size of the loan on a % basis. This is owing to a current cashflow problem in the light of the global situation. In my opinion it is likely to be temporary although quite how long it will last will be dictated by market conditions largely outside Spain  

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In Spain. Have put in an offer on a villa in Denia and had wondered how it might change the mortgage rates.

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Depends on your circumstances - up to 50% of value there is no change in rates - above 50% LTV then there has been an upward adjustment

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