Mortgage Direct April Update

Leading mortgage broker company Mortgage Direct announce that the Euribor looks set to remain at low levels for a considerable time to come.

Mortgage Direct’s latest newsletter comes at a very interesting time for Spain and also Europe as a whole. Despite a certain degree of political instability in Europe at the moment, this has not deterred those wishing to buy property in Spain. Mortgage Direct’s in-house statistics show that the number of enquiries for mortgages is increasing.

Considering the upcoming UK referendum on leaving the EU, this is quite surprising and says a great deal about Spain and how popular it is as a country for those wanting to purchase holiday homes or who wish to move here.

The Low Euribor

One of the primary lenders in Spain recently informed Mortgage Direct that they are looking to offer only fixed rate mortgages for the foreseeable future. Moving forward, Mortgage Direct may still offer variable rates to selected customers if they really do not wish to take a fixed rate, but this will be a special favour and an exception to the rule.

The bank in question explained that the low Euribor and its effect on their profit margins for mortgages is the sole reason for this. In our view, this clearly indicates that the bank feels the Euribor will remain at very low levels for quite a few more years.

Whilst other banks have not followed the above approach, many of them are currently reviewing the mortgage conditions they offer. The low Euribor and political developments over the coming months will clearly have a huge impact on this, so it will be interesting to see how things pan out.

Current Mortgage Conditions:

Mortgage Interest Rates
Euribor (-0.01%) + 1.3% to 2.5%
Currently 1.3% to 2.5%
Fixed rates from 2.15% to 2.75%

Maximum Borrowing (lower of valuation or purchase price)
Fiscal Residents 80%
Non-residents up to 70%*

Exchange Rates
1 Euro =0.780 GBP
1 Euro= 1.140 USD

*Depends on client’s profile and country of residence.

Source: Mortgage Direct SL

For any questions or client enquiries, please don’t hesitate to get in touch at info@mortgagedirectsl.com.

Mortgage Direct offer a bespoke service exclusively to all Lucas Fox clients. Clients may pre-arrange a Skype video call, which could be from a Lucas Fox meeting room, for example, and the experts at Mortgage Direct will be available to offer any advice and assistance required.

 

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