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Spanish Mortgage Market - What Now?
Europa Mortgages provide a brief overview of the Spanish mortgage market, in the current turmoil
By: Europa Mortgages
Lender margins : Credit crunch margin increases by Spanish mortgage lenders show no signs of being reduced. Many lenders now offering 1.25% or more above the Euribor base rate. Previously 1% above was the most common lender margin. Managing Director Chris Norman said, "many of our clients are being squeezed by lenders in a difficult market. We are in constant contact with all of our lenders, so will often be able to find the very best offers"
Loans-to-value : Whereas 80% of valuation was once common, now the best available deals seem to be at 70% of the lower of price and valuation. In fact, many lenders are now lending a maximum of 655, particularly with long term interest only mortgages.
In general, mortgage placements and approvals are taking longer than ever before, despite falling interest rates. Loans to value and margins are making it difficult for many clients to refinance or in aome cases to complete on off-plan purchases, despite having paid 20 or 30% downpayments.
Europa Mortgages are a Spanish registered company, based in Spain, and with consultants from a wide range of banking, finance and accountancy backgrounds. Contact at www.europamortgages.com
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Mortgage brokers based in Spain, offering flexible mortgages for the Spanish property market, with efficient and professional service.