A number of Spanish Banks, Barclays Bank Spain and Caixa Bank included, have moved to giving client specific rates and terms. Mortgage applications will be input into the Banks scoring system and then provide a minimum rate and maximum loan to value.
The scoring systems are developed by analysis of the banks back book and categorises applicants into groups based on their overall situation. If a client is unfortunate enough to fall in a high risk group immaterial of their personal situation they will be penalized on rate and terms.
There will be, as more Banks adopt this approach, a lack of certainty when deciding which bank to apply to as to what in fact the final product may look like.
To get around this uncertainty it may become necessary to make multiple applications to ensure best terms are achieved. Headline rates given by Banks may in fact just be an absolute best case scenario with very few applicants achieving them.
Using an independent broker who can more easily make multiple applications to a number of banks will help as long as the broker is independent and willing to do the work involved in sending an application to more than one bank.
International Mortgage Solutions