5 April 2017
IS IT ABOUT TO BECOME EASIER FOR BRITS TO PURCHASE PROPERTY IN SPAIN?
MANY PEOPLE ARE CONCERNED ABOUT THE POSSIBLE REPERCUSSIONS OF BREXIT ON MORTGAGES IN OVERSEAS COUNTRIES SUCH AS SPAIN. MIRANDA JOHN, INTERNATIONAL MANAGER AT SPF PRIVATE CLIENTS, RECENTLY VISITED MALAGA FOR THE LAUNCH OF A JOINT VENTURE BETWEEN SANTANDER AND BNP PARIBAS. BELOW SHE EXPLAINS WHAT THE CURRENT SITUATION IS IN SPAIN.
So far very little has changed and the indications are this is too valuable a business, certainly for European banks, to wish to lose. Santander and BNP Paribas recently joined together to offer Spanish mortgages focusing on the UK and international buyers’ market. SPF has been selected as a partner on the test pilot, which could have been a poisoned chalice as international lenders can be slow and difficult to please. However, I am delighted to report that the lender really went the extra mile for both of my clients who were buying property in Spain.
Firstly, we were impressed by the speed of the transactions – completion could have taken place within three weeks, if required, which having arranged mortgages in Spain for 15 years I know is exceptionally quick. The bank also responded proactively to discussions on lending criteria and managed to be flexible while still providing the client with a competitively priced mortgage.
There is even more encouraging news on the horizon with a further two private banks likely to have offerings in the higher-end property market, for property purchases of €3 million-plus. This has been an extremely challenging market over the past few years with few options available. There may now even be options for capital raising, which has been tricky in the past.
Improved competition in these different segments, combined with a far more active property market now that much of the over-supply has gone, means all eyes will be on Spain and particularly the Islands this year.