Re: Basic mortgage questions
 

Yes Lynn good point. In UK you just get a letter saying Bank etc have informed Land Registry they no longer have an interest no cost whatsoever. I mentioned it as OP may not be aware

Re: Basic mortgage questions
 

It is outrageous!

They charge 1% up front on the mortgage as a tax and another 1% to get rid of it after you have paid it off!

I understand that they even charge 1% tax on car finance deals!

Still - take it or leave it - that's what you have to pay to live in Spain.

Re: Basic mortgage questions
 

Hi, bobd22, anyway, thanks very much for your help.
Paying bank the whole 1k euro in the end just for nothing sounds weird, tbh. How do they explain it? What do you pay for actually?

Hi snikpoh! The greatest benefit of monthly Euribor is that it is always lower than yearly one =) 1m < 3m < 6m < 12m

You have a very good % and no fees for repayment! I will take a note of Sabadell, thanks. If I might ask, when did you take your mortgage? I am afraid, they can probably be much greedier now =)

Fred James, I'll try to avoid those which have some minimum % as this is kind of unfair, looking at current Euribor rates. And of course, they don't have maximum %, do they? =)
Thanks for advice! If I decide to go for a mortgage, then hopefully one of the "good" banks approves me.

Re: Basic mortgage questions
 

Quite simply you are paying including legal fees (never cheap in Spain) to have the banks interest in your property removed from the deeds. It may be as Fred says you dont really need to do it unless selling. but they did tell me it should be done. It also as always in Spain has to go through the Notary. Bank or solicitor can do it but Bank is cheaper.

Re: Basic mortgage questions
 

I took it out over 7 years ago - things have changed greatly since then.

I'm not sure what you mean by "1m < 3m < 6m < 12m" - why should that be the case?

Re: Basic mortgage questions
 

bobd22, thanks, perfect robbery of people..

snikpoh, oh yes, 7 years ago things were much brighter. Any idea if similar conditions still in place anywhere?

Regarding Euribor: this is intress on which European Central Bank gives money to the local banks. 3m, 6m etc is the period of this loan. The shorter it is, the smaller intress.

If you check current rates, you can see that 1m Euribor is lower than 3m and so on. http://www.euribor-rates.eu/current-euribor-rates.asp

Re: Basic mortgage questions
 

[QUOTE=Alicante17;10972445]bobd22, thanks, perfect robbery of people..

Yes wouldn't argue with that view, but that's Spain I suppose:sneaky:

Re: Basic mortgage questions
 

Yes, for obvious reasons most people don't bother doing this, and it gets forgotton about until they try to sell and it comes up on the nota smple. Stage 1 in becoming integrated into Spanish life is learning to hate Hacienda, stage 2 is learning to hate the Spanish banks ;). Their only defence is that these charges were first implemented a long time when mortgages were relatively small, paid off in 10 years maybe. Of course when mortgages went up to 30 or even 50 years they made no effort to reduce the charges correspondingly, so now people can end up paying thousands of euros for someone to press a button somewhere.

Re: Basic mortgage questions
 

Might be of interest for those here that have a mortgage, I had this from a Spanish friend. I know zilch about it, but according to him you can renegotiate a good rate at the moment.

Re: Basic mortgage questions
 

During many years of working in the world of finance I never met anyone who read every word of the small print on the mortgage offer. I actually received a phone call from a guy, many years after arranging his mortgage, he couldn't thank me enough for selecting a 1.0% above BOEBR scheme, I never gave it a thought at the time of sorting the forms out, the possibllity of a 0.50% BOEBR was not even worth mentioning, or so I thought. :eek:

I would advise, painful as it might be, to read every word of the small print, make notes of anything that you don't understand and then ask the broker/bank adviser to explain them. Everything involving Spanish property, other than the actual property price, appears mega expensive to me, so I shan't get into that.

Re: Basic mortgage questions
 

Sorry but is your friend saying there are mortgages out there that are fixed at 2.75% for the life of the loan?

Re: Basic mortgage questions
 

Not sure, what I quoted is what he said, as I don't want a mortgage, I didn't ask any further details. He's a journalist, lives in Galicia, currently lecturing in Finland, so I imagine he's pretty switched on.

Re: Basic mortgage questions
 

I can imagine them being euribor + 2.75%, but not fixed at 2.75%. If that were the case then I'd be buying.

Re: Basic mortgage questions
 

You're probably right, I've no idea, long time since I've had a mortgage. ;)