Further to my article on Abbey Nationals ( now renamed Santander) Spanish offering from their mortgage centre in Bradford it would appear even the staff in the centre are confused about their offering.
Whilst we cannot access this product on behalf of clients; as an advice company it is important to us clients are aware of all options available to them. I am however a little concerned about the conflicting information provided by Abbey and hope over the next few months the information given improves.
This I believe is vitally important in Spain where when purchasing non refundable deposits can be passed over. If you think you are getting 80% and have an approval in principle it would be a nasty shock to find out 12 weeks down the line you can in fact only get 75%. My belief is that 80% is possible but given feedback this week I am now a little unsure.
This week alone; including one personal call to them made by me; varying terms have been outlined to clients accessing them.
These have ranged from
- 75% of valuation to 80% of valuation or purchase price depending on which consultant you speak to.
- Rates of 1.35% above 12 month Euribor with 12 month Euribor being quoted at as low as 1.11% or 1.99% again depending on consultant at other end.
- 1% redemption penalty for lifetime of loan, which was a shock as by law in Spain maximum, should be 0.50%.
- Timescales for applications ranged from 6 weeks “might take longer” to it is 12 weeks and will not be any quicker.
Where all consultants were in agreement the following terms were offered.
- Fixed rates of 6.8% for a three-year fix or 7% for a five year fix
- Bank fee 1.25%
- Term maximum 25 years up to age 75 years
- Minimum loan size € 40.000
- Minimum income single applicants £ 30,000 per year
- Only Mainland Spain covered
All consultants were also obliged to tell client they could give no advice as to suitability of product and that clients were taking a non-advice transaction.