chopera

[offTopic]In defence of Warner's article on getting your money out of Spain, it was more an observation on the IMF's predictions rather than his own. He correctly concluded that the IMF was effectively declaring Spain to be insolvent, and drew attention to that fact in a somewhat alarmist way. If you think the prediction was wrong then point your finger at the IMF. If you think he was being unnecessarily alarmist then point your finger at him. Also pointing out that the euro will collapse within "x" days if nothing is done is not the same as predicting the euro will definitely collapse.

It's a bit like those who warned of a banking collapse before 2008 - they were proved right because there was a banking collapse. To turn round now and say "well look the banks are still here so they didn't collapse, and those who predicted they would were wrong" is as disingeneous as saying "well look the euro is still here so those who said it would collapse were wrong". The euro as a currency is still here, but in order to maintain it they have had to change or ignore the rules that initially defined it. The euro that went into circulation in 2002 no longer exists, it effectively collapsed years ago when they decided to ignore the rules regarding deficit limits. Since then it has been reinvented several times in an ongoing attempt to keep it in circulation while at the same time preventing entire economies from collapsing. And they still haven't finished.[/offTopic]

missile

Friends of ours got what they thought was a great rent with option to buy from the CAM bank.

steviedeluxe

The likes of Jeremy Warner and Nigel Farage tried to provoke a bank run in March (same as some posters on these boards did the previous summer with Santander) and they've been exposed as giving very bad advice.
In fact anyone who pulled out of Spanish shares this year, has probably lost money thanks to that bad advice and they should sue them!

Just to clarify regarding the thread title - I'm quite happy renting as rent levels are low now.

JB80

I guess it all depends on what someone wants. No doubt it is best to shop around banks and see just what they can offer you, if we were seriously wanting to buy then that's what we'd do but I have no inclination to believe any Spanish bank will give you a mortgage for any property you want.

I don't know, it's not something high on our agenda just yet anyway.

agoreira

Spot on! Of course the banks never collapsed, simply because the EU pumped billions into them. We had the situation of countries like Portugal and Greece borrowing money at say 8% (can't remember the figures) to lend to Spain ay say 4%. Madness! Any business can be kept afloat if you pump enough of someone else's money into it.

IamStu

I think the issue here is the fact that many residential properties were built very cheaply and in a hurry.
I have been offered very high spec properties from the bank. Good location and build quality. It´s just that there doesn´t seem to be many "high spec" properties full stop.

steviedeluxe

Not just the EU, the UK taxpayer has paid a few billion too to prop up the likes of Northern Rock, RBS etc

A comparison of bank bailouts here (the UK compares well apparently to some like Ireland)

http://flipchartfairytales.wordpress...he-uk-compare/

missile

As you do not intend to purchase, mortgage arrangements will be of little interest to you.

For the benefit of a.n.others, Barclays.es (and other banks?) are happy to lend subject to valuation on any property, to customers who meet their lending criteria. When I last checked Barclays were advertising attractive re-mortgage deals.

JB80

Well, this is probably true and we are yet to be offered anything from the bank, not through lack of asking but they so far have said look at the public website.
It's all well and good but it's all flats, semi-detatched and of questionable quality.

Alternatively we could find half a dozen properties right now that would interest us and be affordable and they wont even listen if they don't have their paws in it already.
But as mentioned that's only the couple of banks we've spoken to and our current banks position. Maybe as new customers that has something to do with it as well.

That's not what I said though, I'm in no hurry true but the for the right place I'd consider it.
It's all about mortgage arrangements in case you missed it.

chopera

Solvia usually give better conditions if you take out a 50% mortgage than if you take out a 20% mortgage. They actually want to lend against their properties rather than take cash, but they don't want to lend too much - just enough to charge interest, while ensuring the property won't drift into negative equity. What they should have done in the first place basically.

Unfortunately the laws of nature dictate that the good stuff tends to get bought, while the crap just builds up on the banks' books. They might well be holding the good ones back because they don't want to realise losses on their books, but on the other hand laws have been passed preventing repossessions of properties where there is no household income. So you may find that banks are also sitting on a lot of poor properties that they are unable to repossess as well.

chopera

If you want to take advantage of the market now and are in it for the long haul, it might be worth considering land, in the expectation that in the future you should be able to raise finance to build on it. Land prices have completely collapsed (banks won't finance land purchases) and with land you can just sit on it and wait without having to worry about maintaining a house you might not be able to use that much until you retire (if that is your situation).

missile

I was answering what IMHO is your misinformation - I do not know anyone apart from you who has reported a bank will only lend on a property which they own.

For the benefit of the OP and a.n.others.
In my experience it is no harder to negotiate a mortgage in Spain than in the UK. I know many who have mortgages from several different Spanish banks.

cricketman

I'm confused about your post. Almost any bank will give you a mortgage on property as long as:

1. You have at least a 20% deposit
2. You also have the 10% fees in cash
3. You can prove your income in Spain, they will lend you no more than about 4 times the amount at the moment
4. They value the property at at least the price you are paying for it

Try ING Direct, or to be honest any of the banks or cajas

If you have no income in Spain then it is much more difficult to get a mortgage.

Neptuno

Our estate agent said the same thing-that buyers have to be cash buyers unless you buy a bank property, then they will lend you the money.

missile

Which estate agent?

If you declare where you are interested in purchasing, I feel sure forum members will be able to recommend a better EA.