May 2022
Property sales boom with best figures since 2007
SPAIN’S property market is bouncing back fast with home sales up 25.6% year-on-year and a 10.5% increase on February’s total, according to the National Statistics Institute.
It is a very good time to invest, but borrowers need to keep their eyes open.
With an array of banks battling to offer the most attractive mortgage rates, it’s easy to get carried away.
That is where a broker becomes essential: someone in your corner to highlight any hidden fees or compulsory add-ons tucked away in the small print and to ensure you get the best possible mortgage rate to suit your needs.
One of the biggest pitfalls can be ‘trap-related products’ that often get hidden in the small print.
These additional products get attached to your mortgage and usually include insurance policies.
It is important to know exactly what is attached to your mortgage. What may seem like a great rate can be soured by expensive and sometimes unnecessary insurance packages.
Using a broker will save both time and unwanted extras and will always look for ways to lessen their impact.
And while most banks specify the fees and commissions they charge, not all these costs are always declared.
Many financial institutions refrain from publishing less commonly known fees such as early redemption charges.
These are, however, regulated by law, and may not exceed 0.25% for the first 3 years, 0.15% IN YEARS 4 &5 and 0% from the 6th, on variable rate mortgages.
Fixed rate mortgages (Usually reserved for Euro earners) The penalty is 2% during the initial 10 YEARS and 1% thereafter.
It is advisable to ask the bank to specify all commissions and how many there are before signing the contract. This will spare you unwanted surprises down the road.
When it comes to picking a mortgage, you may only get one shot as it is virtually impossible to reverse a decision that goes against you.
ONCE YOU SIGN THE MORTGAGE DEED AT THE NOTARY IT IS SET IN STONE, AS REMORTGAGING AND EQUITY-RELEASE IS ALL BUT IMPOSSIBLE WITH SPANISH BANKS.
Marbella and Beyond offers you instant access to the best property options on the coast, with skilled and experienced property asset advisors, lawyers and wealth management experts.
Marbella & Beyond will arrange a property tour that matches your lifestyle choices, leaving you free to explore your exciting new surroundings while we prepare the very best property portfolio and pocket listings in the area of your choice.
As well as having access to all the Marbella properties commonly available on the most popular property portals and the latest exclusive listings in the best addresses, we have numerous “pocket listings” properties not available on the open market, including high-end developers’ prerelease portfolios.
Unrivaled legal, tax and wealth advice through our team of experts as well as access to some of the best lending rates available.
*a pocket listing is a development or property the owner does not want to appear on websites or property portals.
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