Halifax Announce Spanish Mortgage Interest Rate Changes


From 9th of November Banco Halifax Hispania will be increasing margins above the Euribor which they charge clients for Spanish mortgages.

Halifax are now distinguishing not only between rates applied for interest only but also against loan size and whether 12 month or 1 month Euribor is selected.

The pricing is somewhat complicated making decision making on whether Halifax is best lender in longer term and whether the right index has been selected more difficult to make.

Interest only is now looking a lot less attractive at 2% above 1 month Euribor up from the previous 1.4%. 60 basis points is a huge jump. They remain however with Lloyds one of the few lenders offering the facility.

Other applicants most penalised by the changes are those who require loans of less than € 100.000. You will now pay 0.20% more in margin for the same loan to value if your loan is below € 100.000 rather than above.

It is expected that Lloyds will also announce the same rate margin increases as the two continue their merger activity and bring criteria unto line. It is also expected that Lloyd International the third Spanish mortgage distribution channel will fall in line on rates and criteria.

Banco Halifax and Lloyds will be very focussed next year on maximising incomes from mortgage clients and cross selling of other products will be the key focus of branch staff.

It remains to be seen how much time is dedicated to also making sure clients understand the mortgage they are taking out.

It is hoped that training for branch staff advising clients who access Halifax direct is improved from previously including their international department who most UK clients end up dealing with as getting it right and ensuring client knows exactly what they are taking has just got a whole bundle more complex.

The three year fixed rate on repayment at 3.75% is looking the best value of the portfolio.

Same fixed rate on interest only at 5.35% is looking unattractive.

At IMS we are dedicated to ensuring factual information is provided so anyone unsure of what they are being offered and whether it constitutes good advice should contact us now.

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