The New Year has seen little change in the banking environment with just more of the same in the first couple of weeks.
Sol Bank (Sabadell Group) increased margins in January by 0.25% and has told bank employees there is no great desire to lend this year and that there are to be no negotiations on terms and conditions in a take it or leave it attitude.
Lloyds International ES have removed their 5 year interest only product dropping the facility to two years but with very high margins.
The Bankia group have opened the doors technically to non residents after closing them completely but the internal scoring system so heavily penalizes non resident applications that it remains more or less impossible to gain any loan.
La Caixa pulled all mortgages except for purchases at the end of 2011 removing themselves from any level of equity release or self build loans.
A further push on mortgages for bank owned stock has been implemented across the board. This has been highlighted by a survey where one company went to 46 banks requiring a loan for an independent property and in all instances was told no but they could have a loan for one of the banks stock if they wanted to buy one.
Mortgages being provided for Bank owned stock remain far more flexible with very attractive rates but the sale prices being offered remain high in comparison to where the price should be so there is still a big quid pro quo to consider.
International Mortgage Solutions