If you need a Spanish mortgage for your Spanish property purchase and decide that a mortgage in Spain as opposed to one in the UK is the best option, how do you go about choosing the right one and then organizing it?
You will obviously want a mortgage with the lowest rate, but possibly you will also want a mortgage to suit your own individual circumstances – maybe an interest only mortgage, one with a long repayment term, flexibility on payments etc etc.
There is a large selection of mortgages available in Spain, all with their own costs and benefits, so you have to invest a lot of time and effort into finding a mortgage if you want to get the best one for you. Not being in Spain, and with the language barrier and cultural differences, it can be difficult for many English-speakers to get a good mortgage in Spain.
Using a good mortgage broker is a very sensible option.
A good broker will, firstly, help you to establish what you need from a mortgage, something a bank will not necessarily do.
The broker should then be able to establish your creditworthiness and how the Spanish Banks are likely to look at your application. The Spanish banks have a different approach to UK banks. This will enable the broker to select the right bank and the right mortgage product for you.
Thirdly, and perhaps most importantly the broker will act on your behalf with the whole mortgage application process. Dealing with a Spanish bank with all the language and cultural differences can be very difficult and having somebody who understands the process is invaluable. The broker will understand the small print and additional charges that some banks impose and will be able to ensure that the application goes through smoothly and that funds are available for completion.
A good broker will usually be based in Spain and work with many or all of the mortgage lenders in Spain and offshore such as Gibraltar and should know all about the products on offer. They know which banks are offering promotions and special deals in order to meet monthly targets They will know when and where pressure can be applied to negotiate the best terms for you. In Spain it is still common for the local Bank manager to have some discretion on the terms of the Mortgage offer.
Good Mortgage brokers will be passing business to the banks on a regular basis and this gives them more power to negotiate a good deal for you. The Banks recognize this and also the fact that the broker is helping the bank with the language and cultural differences. For this reason, brokers can often negotiate better rates and charges that are on offer to the public.
Contact OLG Spain for your Spanish mortgage needs.
0800 0433 409
OLG Spain
