Spanish Mortgage Product
Last week saw another two Banks lower loan to values for non residents and tighten risk criteria’s.
Nat West Gibraltar having already lowered loan to values last year from 70% to 60% moved to a maximum of 50% and withdrew its two year discount product.
Bankinter who have previously been very active in the non resident mortgage market dropped loan to values from 70% to 60%, decreased debt to income ratios allowable from 40% to 30% and withdrew all branch manager mandates pulling all decision making back to their central risk department.
This change will affect any clients with this bank who does not have a written offer of lending as cases in the system not yet offered will not be honored and will only be offered under the new terms.
Equity release or cash out in Spain is now almost impossible unless the money can be proved to be being utilized for improvement on the property in Spain this type of loan is fast joining self certified and 100% mortgages as no longer available within the Spanish market.