Spanish Mortgage Brokers
There exists two types of Spanish mortgage brokers.
It is therefore worthwhile understanding the role each broker can play. When making an application for a Mortgage in Spain.
Two different types of Brokers exists
The first type of mortgage broker in Spain is fully independent. Also able to manage and negotiate on an your behalf an application with the Spanish Banks.
In this instance the broker must be qualified and authorised by the Bank of the Spain. Also hold a public liability certificate.
What does this mean
Have undertaken extensive courses and testing as set by the Spanish authority. In addition required to keep themselves up to date with changes. Within the Spanish mortgage market and regulation.
Because they work with a wide variety of Spanish Banks they will be able to place the mortgage application and present the mortgage in Spain documents required. With the most suitable lender for your circumstances. Taking into account all requirements.
These will include the needs of you as the borrower. Your personal fiscal situation and risk profile. Along with Bank criteria.
Therefore finally obtaining the best possible terms and conditions for your Spanish mortgage.
The Spanish mortgage application process
Most Spanish Banks do not have set products for a mortgage in Spain. They adapt their offering according to their perceived view of the quality of the application. Having an expert and experienced broker package and present your application therefore has great value.
Your Mortgage application in Spain will firstly it will be presented to the right lenders. Saving you time on not making wasted applications to a lender that cannot meet your needs. Or deal with your particular circumstances.
Spanish Banks mortgage criteria
Each Bank in Spain has different criteria. The way they assess affordability. The treatment of buy to lets held. How they calculate exchange rates and how much of your income they use.
Along with what outgoings and debts they assess.
They also may have different approaches to ages. Time in current employment. Whether a search will be registered on your credit file in your country of origin. Their view on what is acceptable as a source of deposits. Along with ownership structures.
This type of broker will also Know the law on marital regimes and how this may affect lending. Also land classifications and its impact on a mortgage in Spain.
Mortgage fees
You can expect to pay a fee to the broker for the work they do. However this should only be after negotiations have taken place and you have an underwritten financial approval. Until this point you cannot be sure what your Spanish mortgage will look like.
Introducers
The second type of mortgage broker in Spain, may only refer you to one specific Bank. They are classed as just introducers.
They may well have a good level of knowledge about Spanish Mortgages. However they are not authorised to manage and negotiate an application on your behalf.
They are not able to work with, or offer to you, a wide range of solutions. They may only work with one bank. The extent of their involvement will be to recommend that lender. To then pass your details directly to that lender so that they can make direct contact with you.
They cannot request or pass over your documents to the Spanish Bank. They cannot intervene with the application. Your relationship and all communication must be directly with that Bank.
This means your Mortgage in Spain will reflect the terms and conditions of that lender. Understanding of that lender and what could be achieved with negotiation will not be known to you. Misunderstandings due to language barriers may occur. Efficiency of the application process will depend solely on who at that Bank picks up your application.
The introducer however will probably not charge a fee. Taking payment only from the Bank. This does not mean you will save money in the long term. Or will end up with the best possible solution available to you.
Neither will be provided best possible advice and guidance. Nor liability protection against bad initial advice.
Mortgages in Spain for non residents
If you are a non resident of Spain. Do not have a good understanding of the mortgage market in Spain. Or knowledge about each lending entity, it is probably best to appoint an independent broker. This will ensure you are informed and protected throughout the process.
Mortgage Regulation in Spain
Mortgage Regulation was introduced to Spain in 2019. This was to prevent some of the activities that had happened in the past. To ensure Spanish Banks adhered to certain quality standards. To also ensure mortgage applicants were protected from abusive clauses.
Previously things like floor rates were introduced in Mortgage deeds. Without the borrower understanding what they signing. Or on occasions even informed it would be included ion the mortgage deed. Along with high cost compulsory linked products.
All lenders in Spain are now obliged, if they want to offer linked products. One offer with linked products and one offer without. You can then decide which offer works best for you.
You are required to have a mandatory cooling off period from offer to completion. It is also law that you or your power of attorney meet the Notary at lest 48 hours before completion. This is so the Notary can be assured you have understood all the terms and conditions within your mortgage deed. That you know the contract is binding and what you are signing for on day of completion.
Choose a broker who can provide the full service
A good broker in Spain will hold your hand through all the processes until the day you sign and take possession of your new home. It is in your interest to select a a Spanish Mortgage broker who provides the full service. IMS company profile meets this requirement.