Are there positives on the horizon?

MortgageDespite all the current bad news across Europe buyers are still interested in Spain.

At the medium to the top end of the market where prices appear to have stabilised there remains a reasonably high interest in having a bolt hole in Spain.

Of particularly high activity are clients who live and work in Africa or the Middle East in specialized industries like Oil. Having lived abroad for many years most find the prospect of returning to the UK as their main base unappealing.

At the other end of the market more and more developments are now being offered at discount prices with high loan-to-value rates and really good margins above Euribor.

We expect this to continue in 2012 with more and more Banks looking to offload stock, improve liquidity and be more inclined to consider non-resident buyers on high loan-to-value on the basis that it gets rid of today’s problem.

What clients will need to be willing to accept, and agents and brokers be willing to show, is transparency on what fees it will cost for an agent to highlight developments to a client and provide the information the client requires. For clients wanting to ensure highest possible loan they will need to be willing to pay a broker to package the application for the lending to give best possible chance of success. Banks on these types of developments are either paying little or no commissions and will not pay for the mortgage.

The days of fees being earned and existing but being hidden and the days of clients expecting it to appear like someone is working for nothing will need to change.

It is reasonable and acceptable for an agent and a mortgage broker to make money, it just requires a little honesty upfront and for potential purchasers to appreciate that without the marketing of these developments and a good understanding of Bank psyche they may not be aware of, or able to obtain, the opportunities the current market can provide.

International Mortgage Solutions
www.international-mortgages.org

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