Having written last week that despite the Bank bailout request from Spanish Government, and continuing lack of access to money markets for all Spanish Banks that we had not seen any price increases, this week most Banks announced just that.
Sol Bank has added a further 0.90% to their margin and have implemented a high first year premium rate of 4.85%. O the positive side they have maintained their 70% product.
Deutsche Bank has announced there will be pricing increases which will be implemented from the 31st of July but the details have not yet been issued.
A number of Banks have indicated they are also reviewing their pricing after this week’s downgrade of 28 entities by Moody’s and we expect these to start being implemented shortly.
Whilst the issues in Spain are well reported, in general across Europe, including the UK, it is widely reported that mortgage rates will rise as all Banks are suffering from a higher cost of funding which eventually has to be passed onto the consumer.
Spain’s rates rises are unlikely to be the increases new borrowers will feel the impact of in July.
International Mortgage Solutions