What regulation exists in Spain
Spanish Mortgage regulation exists in Spain. It is necessary for a mortgage adviser or a mortgage advice company to be regulated. To be independent there are now exams which an adviser must pass. Under regulation all brokers who place and negotiate applications have to register with the Bank of Spain. In addition evidence knowledge, professionalism and financial integrity.
Brokers without qualification may only pass you to one specific bank. Also cannot package and present your documents.
Does having exams like FPC from the UK meet Spanish Mortgage regulation
Advisers with experience outside Spain provide no protection. Nor does it in anyway demonstrate a level of expertise in the Spanish mortgage market. Unless they also have the necessary Spanish Mortgage regulation. In order to negotiate with lenders exam requirements are required.
What obligations does a company arranging mortgages in Spain have
From June 2019 all providers offering full mortgage placement facilities needed to register with the Bank of Spain. This is in order to meet Spanish Mortgage regulation requirements.
Mortgages in Spain are written into a deed. Deeds are signed in front of a Notary. The Notary assumes responsibility. Primarily to ensure the mortgagee understands the product and the deed they are signing. It is implicit once signed that the person signing understands fully the document being signed. Also the terms and the longer term consequences.
How do you know you are getting good advice
Full explanation of product is important when taking a Spanish mortgage. Have you been warned of possible future implications. Also have all the details outlined in clearly. This is important to enable the applicant to firstly be able to check at Notary what they are signing is what they expected. Secondly that they have a good understanding of it.
Do not sign a mortgage deed in Spain unless you are completely happy. That you understand what you have been offered. Also any future restrictions you may have. By law you will be provided from the lender, a more detailed general information sheet and a FEIN. Both of which will be specific to the loan you are taking.
What will a good Spanish Mortgage provider offer you
Individuals can provide you with authorised mortgage placement. In this instance they will be registered with the Bank of Spain. Also have undertaken the necessary exams. Able to provide their registration number, address. Finally hold liability insurance. IMS ensure you have access, when making an application, to a regulated individual. You will obtain before an application is made to a lender a written illustration. Outlining general terms and conditions and options you have. Be provided access to the majority of the market. Discuss with you the mortgage product type and any compulsory products. Our initial guidance outlines product key features, terms, and anticipated costs. In conclusion identify points you should consider when thinking of applying for a loan in Spain »
Key points for consideration when taking a mortgage in Spain
One of the key points of a mortgage in Spain is. Unlike in many countries, in Spain if you are not happy with your lender, or, more competitive products are available at a later date remortgages are not readily available. At present lenders do not have standard re-mortgage products . Lender hopping for a better deal on a regular basis is not practical in Spain. Therefore you may have to remain with that Bank. New law from June 2019 makes it cheaper. In addition obliges your existing lender to change your product to a fixed rate.
What other considerations should I make
Firstly, are compulsory products linked to the offered loan rate. For instance what happens if for any reason you cancel them. Also what rate applies if you do not take compulsory products. If you want flexibility for the future you need a clear view of what opportunity you will get to overpay the loan. Therefore what the penalties are. The June 2019 Mortgage act now prevents lenders from stopping you paying early. In addition only requires you give the Bank one months notice of your intention to do so. Maximum early payment penalties however have been significantly reduced.
Ensure protection by Spanish mortgage regulation
A mortgage adviser who is experienced in Spain is important. The person who is assisting you in the application process must have passed statutory exams. There remains differences in Spanish lending. Consequently inexperienced individuals could badly advise you. Even if they arequalified and registered with the authorities. You should check how long the individual has been arranging mortgages in Spain,. Do they have a company or work on an individual basis. Are they able to offer advice over all areas of possible solutions. Also how many Banks do they work with.
A registered Spanish company may provide higher levels of protection. In comparison to an individual. Firstly company checks are possible. Secondly have financial obligations to meet. Thirdly their time in business is visible.
Should I pay fees upfront
Because of the volatility of the Spanish Mortgage market and the fact that lenders will negotiate to to secure quality clients a good broker in Spain will never make upfront charges. Access to a fully underwritten fiscal approval is provided for no cost.
Check what other clients saying
Before selecting a Spanish Mortgage company you should check there are no negative comments on the internet and look at what past customers have said about the service they offer.