In June 2019 new Spanish Mortgages Laws came into force ( LCCI 05/2019) bringing about some important changes.
Spanish banks now cover the mortgage costs that would otherwise have been paid by the borrower to the Spanish solicitor just prior to completing the property purchase :
These are as follows :
• Mortgage notary• Mortgage registry
The above costs were on average equal to 2% of the mortgage amount, so the saving to the borrower is quite substantial.
The borrower now only has to pay the valuation and the bank arrangement fee to the Spanish lender. The latter we can sometimes negotiate downwards.
Costs pertaining to the purchase are of course still paid for by the buyer but retained by the bank at completion to settle on their behalf.
In addition to the above saving , we have access to Spanish lenders who do not require that the borrower take out a compulsory life assurance policy in connection with the Spanish mortgage,which again reduces the cost of the mortgage .
Please contact our mortgage team for details for current mortgage schemes available that fall into the above category. Tel. 01844 261886 or email mortgages@charleshamer.co.uk
