Property in Spain: don’t miss out on a mortgage broker


MORTGAGE Approval Numbers Rise.

Figures show that the number of loans approved last November rose 24.1% year-on-year, making it the strongest month since 2010.

Around 36,220 home loans were agreed as the real estate market not only recovered but actually started to boom after the pandemic restrictions.

This is a trend that we have continued at the tax office in the months since.

Anecdotally, many of our real estate peers have reported some amazing numbers. One agency in Marbella has already sold over €9m worth of properties since the start of the year whilst others have told us about their best start to the year in terms of sales they have ever had.

But with sales booming, it’s important to remember how important mortgage brokers can be.

Don’t skip finding a mortgage broker, writes the Finance Bureau’s Tancrede de Pola

With established links to all major Spanish lenders, the finance office acts as an intermediary between the client and the bank – but it is important to remember that the broker is not affiliated with the bank – working to find the best deal for the buyer to find available.

It’s important to have someone on your side to point out any hidden fees or mandatory surcharges in the fine print and ensure you’re getting the best possible mortgage rate to suit your needs and circumstances.

One of the biggest pitfalls can be “trap-related products,” which are often hidden in the fine print. These additional products are attached to your mortgage and usually include insurance policies.

It is important to know exactly what is involved with your mortgage. What may seem like a great price can be marred by expensive – and sometimes unnecessary – insurance packages.

Using a broker saves both time and money as they keep an eye out for these hidden add-ons and are always looking for ways to lessen their impact.

And while the vast majority of banks disclose the fees and commissions they charge, not all of these costs are always disclosed.

But the best way to ensure a good mortgage that doesn’t hide anything in the fine print is to enlist the help of a mortgage broker.

When it comes to choosing a mortgage, you need to get it right the first time because the relatively high transaction costs make it virtually impossible to undo.


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