Changing mortgage provider
Feb 19th 2009, 8:38 am
#1
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Changing mortgage provider
Possible one for you here Fred.
Do Spanish mortgage providers have fixed rate mortgages a minimum 5 year would be ideal.
Would there be
Transfer or valuation fees , cancellation penalties or arrangement fees to take into account ?
If they do would this make a 1 or 2 year not worth the expence.
Or if one has a variable rate mortgage can increased repayments be made to reduce the term of the policy.
Could this result in any financial penalty.
I suppose an obvious place to start is the original provider ?
Chris
Do Spanish mortgage providers have fixed rate mortgages a minimum 5 year would be ideal.
Would there be
Transfer or valuation fees , cancellation penalties or arrangement fees to take into account ?
If they do would this make a 1 or 2 year not worth the expence.
Or if one has a variable rate mortgage can increased repayments be made to reduce the term of the policy.
Could this result in any financial penalty.
I suppose an obvious place to start is the original provider ?
Chris
Last edited by chrismortley; Feb 19th 2009 at 8:42 am.
Feb 19th 2009, 9:01 am
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Changing mortgage provider
The first point to remember is that Spanish banks, like UK banks are not lending much money at present so even finding an offer might be tricky.
I can't say I've seen any long term fixed rates, the norm is a one year fixed rate.
There would almost certainly be fees to pay, both cancellation and to set up a new one and certainly a new valuation. Spanish banks are notorious for the costs of mortgages.
I don't know if it is possible to make larger payments but somehow I think it may be difficult as the banks are not very flexible - a mortgage has an escritura about 10 pages long!
If you are only looking to change for a short period (presumably to get a better rate or reduce payments) I doubt that it would be economic.
As you said yourself, the best place to start negotiating is with your present bank.
I can't say I've seen any long term fixed rates, the norm is a one year fixed rate.
There would almost certainly be fees to pay, both cancellation and to set up a new one and certainly a new valuation. Spanish banks are notorious for the costs of mortgages.
I don't know if it is possible to make larger payments but somehow I think it may be difficult as the banks are not very flexible - a mortgage has an escritura about 10 pages long!
If you are only looking to change for a short period (presumably to get a better rate or reduce payments) I doubt that it would be economic.
As you said yourself, the best place to start negotiating is with your present bank.
Feb 19th 2009, 9:18 am
#3
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Joined: Feb 2006
Location: Isla Canela & Mountnessing
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Re: Changing mortgage provider
The first point to remember is that Spanish banks, like UK banks are not lending much money at present so even finding an offer might be tricky.
I can't say I've seen any long term fixed rates, the norm is a one year fixed rate.
There would almost certainly be fees to pay, both cancellation and to set up a new one and certainly a new valuation. Spanish banks are notorious for the costs of mortgages.
I don't know if it is possible to make larger payments but somehow I think it may be difficult as the banks are not very flexible - a mortgage has an escritura about 10 pages long!
If you are only looking to change for a short period (presumably to get a better rate or reduce payments) I doubt that it would be economic.
As you said yourself, the best place to start negotiating is with your present bank.
I can't say I've seen any long term fixed rates, the norm is a one year fixed rate.
There would almost certainly be fees to pay, both cancellation and to set up a new one and certainly a new valuation. Spanish banks are notorious for the costs of mortgages.
I don't know if it is possible to make larger payments but somehow I think it may be difficult as the banks are not very flexible - a mortgage has an escritura about 10 pages long!
If you are only looking to change for a short period (presumably to get a better rate or reduce payments) I doubt that it would be economic.
As you said yourself, the best place to start negotiating is with your present bank.
We are over in Spain next week & I don't fancy banging my head against a brick wall for the sake of it for the whole of our time there
Feb 19th 2009, 9:19 am
#4
Family man
Joined: Nov 2007
Location: Playa Flamenca, Orihuela Costa
Posts: 542
Re: Changing mortgage provider
The first point to remember is that Spanish banks, like UK banks are not lending much money at present so even finding an offer might be tricky.
I can't say I've seen any long term fixed rates, the norm is a one year fixed rate.
There would almost certainly be fees to pay, both cancellation and to set up a new one and certainly a new valuation. Spanish banks are notorious for the costs of mortgages.
I don't know if it is possible to make larger payments but somehow I think it may be difficult as the banks are not very flexible - a mortgage has an escritura about 10 pages long!
If you are only looking to change for a short period (presumably to get a better rate or reduce payments) I doubt that it would be economic.
As you said yourself, the best place to start negotiating is with your present bank.
I can't say I've seen any long term fixed rates, the norm is a one year fixed rate.
There would almost certainly be fees to pay, both cancellation and to set up a new one and certainly a new valuation. Spanish banks are notorious for the costs of mortgages.
I don't know if it is possible to make larger payments but somehow I think it may be difficult as the banks are not very flexible - a mortgage has an escritura about 10 pages long!
If you are only looking to change for a short period (presumably to get a better rate or reduce payments) I doubt that it would be economic.
As you said yourself, the best place to start negotiating is with your present bank.
Feb 19th 2009, 9:36 am
#5
Grapes are good 4 U !
Joined: Apr 2007
Location: Hondon Valley
Posts: 569
Re: Changing mortgage provider
I am mortgaged with CajaMurica - which was at 3.5% three years ago - and now just GONE UP to 6.25% !!!! This has hit me bad - I approached them recently and they are aware of the struggles. They confirmed that their variable rate product is reviewed just ONCE a year and adjusted accordingly to the average year's rates. Mine was just 'adjusted' upwards in Nov' so I have to wait until Nov 2009 for a further review !! They had only ONE option of help for me to: reduce/defer the interest payment for a year or two ! Which will help BUT I am going to look around as the rate is too high - of course as someone else said - sometimes the fees can negate the cost benefits over a short term. Devil and Deep Blue Sea ?!?!?
... difficult times for many !!
Feb 19th 2009, 10:49 am
#7
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Joined: Sep 2007
Location: Ontinyent - Valencia region (campo)
Posts: 5,159
Re: Changing mortgage provider
Possible one for you here Fred.
Do Spanish mortgage providers have fixed rate mortgages a minimum 5 year would be ideal.
Would there be
Transfer or valuation fees , cancellation penalties or arrangement fees to take into account ?
If they do would this make a 1 or 2 year not worth the expence.
Or if one has a variable rate mortgage can increased repayments be made to reduce the term of the policy.
Could this result in any financial penalty.
I suppose an obvious place to start is the original provider ?
Chris
Do Spanish mortgage providers have fixed rate mortgages a minimum 5 year would be ideal.
Would there be
Transfer or valuation fees , cancellation penalties or arrangement fees to take into account ?
If they do would this make a 1 or 2 year not worth the expence.
Or if one has a variable rate mortgage can increased repayments be made to reduce the term of the policy.
Could this result in any financial penalty.
I suppose an obvious place to start is the original provider ?
Chris
I queried this as I thought this tax was when first purchasing the property but I was assured by my bank that I would have to pay it again if I changed mortgage to them.
Can this be true?
Feb 19th 2009, 10:50 am
#8
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Re: Changing mortgage provider
My mortgage is due for recalculation in June & calculated annually so worst ways as it stands we should get at least 1 year of low repayments.
Barclays & the Santander branches are close to each other in Ayamonte so I will check them out next week
Feb 19th 2009, 11:10 am
#9
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Joined: Apr 2008
Posts: 3,081
Re: Changing mortgage provider
I dont know anything about changing mortgage providers, but it is possible to overpay on the mortgage.
Cam Bank have this facility for loans and mortgages.
If you have internet banking you can do it online.
LOANS AND CREDITS Account holders
Statement of Transactions
Loan Status
Economic Information
Repayment Chart
Past Exchange Rates
Early Repayment
Nueva Amortización
Consulta Amortizaciones
Receipts Issued
Download Pending
View Statements
View 2007 Statement
View 2006 Statement
International Acc. Code
Change linked account
Loan application
Loan Simulator
Customise Account
The above is copied from CAM webpage. There is an early repayment option, and you can choose wether to reduce the mortgage term, or reduce the monthly quota with any overpayments made.
I am sure other banks must have this facility.
Cam Bank have this facility for loans and mortgages.
If you have internet banking you can do it online.
LOANS AND CREDITS Account holders
Statement of Transactions
Loan Status
Economic Information
Repayment Chart
Past Exchange Rates
Early Repayment
Nueva Amortización
Consulta Amortizaciones
Receipts Issued
Download Pending
View Statements
View 2007 Statement
View 2006 Statement
International Acc. Code
Change linked account
Loan application
Loan Simulator
Customise Account
The above is copied from CAM webpage. There is an early repayment option, and you can choose wether to reduce the mortgage term, or reduce the monthly quota with any overpayments made.
I am sure other banks must have this facility.
Feb 19th 2009, 11:14 am
#10
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Changing mortgage provider
If you look at the Barclays offer, you will see that it only applies to your "Vivienda Habituel" so presumably it is for residents only.
I have read that the English banks operating in Spain have more money available than Spanish banks that that's only relative. I will be interested to hear how forthcoming the loans are.
I have read that the English banks operating in Spain have more money available than Spanish banks that that's only relative. I will be interested to hear how forthcoming the loans are.
Feb 19th 2009, 11:17 am
#11
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Changing mortgage provider
When I asked last year some time, I was told that I would not only have to pay the normal costs but ALSO the 7% hacienda tax!
I queried this as I thought this tax was when first purchasing the property but I was assured by my bank that I would have to pay it again if I changed mortgage to them.
Can this be true?
I queried this as I thought this tax was when first purchasing the property but I was assured by my bank that I would have to pay it again if I changed mortgage to them.
Can this be true?
What you probably will have to pay again is the registry fee which I think is about 1.5%.
Feb 19th 2009, 6:55 pm
#12
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Joined: May 2004
Location: Guadalhorce Valley, Málaga
Posts: 1,059
Re: Changing mortgage provider
Remember that Barclays in Spain has no connection whatsoever with Barclays in the UK except that they use the name and logo under franchise. This is clearly demonstrated in the abysmal customer support of Barclays Spain which is far worse than most real Spanish banks (even Santander).
Feb 19th 2009, 7:06 pm
#13
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Joined: Feb 2009
Location: Hondon de las Nieves
Posts: 153
Re: Changing mortgage provider
Just looked at the Barclays website, am I right in thinking that you have to take out a life insurance policy with them if you do change mortgage from another bank?
Feb 20th 2009, 11:05 am
#14
Family man
Joined: Nov 2007
Location: Playa Flamenca, Orihuela Costa
Posts: 542
Re: Changing mortgage provider
You need to take out life insurance with any mortgage you take out in Spain.
Feb 20th 2009, 11:23 am
#15
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Re: Changing mortgage provider
I have got to agree with Beachcomber. I am in the process of changing my bank account from Barclays. We fell for the UK connection. We had a number of accounts opened with partners for business and joint personal accounts. I don`t know if this was the norm but they were transferring money from one account to another without my authorisation!!:curse: This meant I have had cheques bouncing (and me paying the fees), accounts overdrawn and money that was not solely mine going into other accounts in my name only. Believe me my business partners were not amused
Hopefully my new "Spanish" bank is not the same, only time will tell.
Although I hasten to add maybe branches in different areas are more customer friendly.
Moan over, good luck with the change of mortgage provider
Hopefully my new "Spanish" bank is not the same, only time will tell.Although I hasten to add maybe branches in different areas are more customer friendly.
Moan over, good luck with the change of mortgage provider