Who are the main Spanish Banks and are they still offering Spanish Mortgages
Due to the economic climate and integration and merger of various Spanish Banks those banks still lending in Spain are now limited. Many brand names are starting to disappear as the new owner re-brands and closes Branch Networks and the banking system is in a constant state of flux.
In recent months Deutsche Bank has withdrawn offering mortgages in Spain to persons not earning their incomes in Euros. This has precluded UK citizens from applying to them. To ensure they have access to the Scandinavian and Swiss market they have developed a very complicated currency mortgage which allows clients of those countries to maintain a loan in their home currency. Where they do offer lending it is at 50% loan to value and rates are competitive.
Lloyds International ES
In May 2013 it was announced that Lloyds Bank was selling its small branch network and its current client book to the Sabadell Group. The implications of this mean that one of the last lenders who does not add life cover as compulsory and the very last lender offering any interest only periods for Spanish loans will in fact disappear by February 2014.
BBK has taken over Caja Sur and Kuxta and is in the process of merging the new network. Focused almost entirely on their own properties they will provide Spanish loans for up to 70%. For independent properties this loan to value will drop to 50% and in many instances no approval will be given unless Bank stock is being bought.
The Sabadell Group is the 4th largest Bank in Spain and has taken over a number of other Spanish Banks including CAM. They are the last lender to offer up to 70% on a mortgage for non residents of Spain. Sabadell, mainly through its Sol Bank network is actively continuing to offer non residents Spanish Mortgages and its buying of Lloyds in Spain would seem to confirm their ongoing desire to supply the nonresident market. Product terms are not the best and Sabadell continues to insist on a minimum floor rate being incorporated into the mortgage deed, a practice many others have moved away from.
Barclays Bank whilst actively reducing their branch network in Spain and whilst limiting lending within the resident market is still offering loans in the nonresident Spanish mortgage market. The Bank is aiming specifically at the high end of the market and the profile of client is high net wealth. To this point Barclays Spain has criteria’s that preclude many applicants. This includes only looking at applications where the first applicant has a minimum net income of equivalent € 5.000 per month and a very low debt to income ratio. Rates are competitive and life cover is not compulsory and maximum loan to value is 65%.
Bankinter offers nonresident mortgages in Spain up to 60% loan to value. Sitting mid pack in terms of product and rates they are neither leading edge nor excessively uncompetitive in comparison to other Spanish Banks. Bankinter does not have the same issues as many banks in terms of defaults due to more diligent lending undertaken during the boom. Bankinter continue to actively offer mortgages in Spain.
Probably the best known Spanish Bank after Santander, Bankia is an amalgamation of a number of Banks forced together by the Spanish Government. Bankia are not actively offering mortgages at the present time as they try desperately to reduce their overall exposure. Bankia may offer a mortgage if an applicant is buying one of the properties they own but this is the only circumstance under which Bankia is actively lending.
Unicaja still provides Spanish Mortgages but has no set products. All applications for a Spanish Mortgage are client specific and after full analysis including the paying for and obtaining of a valuation the client will be given terms, rates and loan to value.
Santander Spanish largest Bank is not focused currently on its home market. Santander has withdrawn their UK based Spanish Mortgage department and access to any loans is only via their Spanish network. Loans are a maximum of 50% and at very high rates.
CajaMar like many of the other Banks in Spain in the current financial climate only wishes to mortgage property they own. Whilst the door remains slightly open to other applicants maximum loan to value is 50% at high rates.
EVO like Bankia are an amalgamation of a number troubled Banks. Owned by the government they are only effectively offering non residents mortgages where the client is buying one of their stock.
Another privately owned Bank, Banca March quietly gets on with business. They can offer up to 60% loan to value for non residents applying for a loan but rates are exceptionally high, turnaround times painfully slow and compulsory products extensive.
As a privately owned savings Bank CajaMurcia remains active but only in the Costa Blanca. They prefer to mortgage only their own stock but will consider other applicants. Rates and terms are client specific but up to 70% can be considered for the right client.
Citibank have a small network in Spain but do not offer any Spanish mortgage facilities.
Caixa Catalyuna is Spanish government owned and like EVO Bank is presently reducing their exposure to lending and will only lend to clients buying their stock.
BBVA is Spanish second largest Bank. They do offer Spanish mortgages to non residents but access and product is limited. Like Unicaja if applying in Spain terms will not be known until a valuation has been paid for and terms are client and application specific. The only time this is not the case is BBVA London who have a jointly Bank of Spain and FSA regulated product offered from their UK Branches. Access to this product is only available direct in London or via an FSA regulated mortgage broker in the UK. BBVA offer up to 60% loan to value.
La Caixa are Spain’s 3rd largest Bank. La Caixa like Barclay Spain are actively looking for non resident mortgage applications but prefer the top end of the market. They offer up to 60% loan to value and up to 50% for loans in excess of € 1m. The Bank offers a competitive fixed rate for the first 5 years followed by relatively low margins above Euribor. Limited on age and total term of loan the La Caixa also adds life insurance policy as compulsory as a lump sum at completion.
UCI are the lending arm of a joint venture between Santander and a French Bank. UCI is not a Bank and purely offers Spanish mortgage facilities for residents of Spain and non residents. At the lower end of the rates they offer the products are very competitive but each offer is bespoke so rates and overall terms will vary from client to client.
NY KREDIT are a Danish Bank. They offer mortgages in Spain but only to tax payers or passport holders of Denmark, Sweden or Norway. NY KREDIT cannot offer loans across all of Spain and have minimum loan level sizes but for Scandinavians who can access them they provide leading edge interest rates and high loan to values. They remain the only bank able to offer interest only.