Spanish Mortgages From UCI

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UCI the mortgage-lending arm of Santander and BNP Paribas is one of the few providers still actively and aggressively providing Spanish mortgages.

UCI only provides Spanish Mortgages via brokers and third parties so no mortgages no business which may explain why they are still very much in the market.

Loan to values which were once 80% with UCI are now 60% but they are the last remaining bank who link solely to the valuation and do not care what the purchase price is.

UCI will ask to see that clients could have completed and had sufficient funds to cover the 40% deposits and costs but as long as this can be proved and valuation level allow UCI will not insist the client, uses there own money the whole amount can be taken on the mortgage.

Whist UCI are providing purchase loans their self-certified, equity release and re-mortgage products have been pulled. They have also withdrawn all interest only facilities.

Perversely UCI used to be one of the most expensive on rates due to the cost of them acquiring funds as they have always had to buy funds on the money market. They are now one of the most cost effective as other banks have done increased margins above Euribor UCI have held rate margin spreads above from the days when business was booming. This means you can achieve rates between 1.25% to 1.5% above Euribor and without any attached products except a Bank of Santander bank account.

Things to watch with UCI however are:

•    UCI allow brokers to add to their opening fee so a broker can disguise their fees as bank fees. UCI standard opening will not exceed 1.5% but you may find yourself quoted 2%.
•     UCI will, unless your broker insists, link clients to IRPH not Euribor. IRPH is an obscure Spanish rate which clients outside Spain will find difficult to track and the rate is currently very high in comparision to Euribors.
•    UCI have no standard rate above Euribor. It is client specific so negotiation has to take place between UCI and your broker to make sure the best possible rate for you is achieved. This can take time and work on behalf of the broker; without negotiation UCI will try to push margins above to the top end of their spread which is 2% above.

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