Thursday, June 18, 2009

Spanish bank discrimination

So here's the deal :-

Spanish banks, having overlent in the past, have ended up with a shed load of property on their books

Partly it has to be said, due to the completely stupid way that mortgages work in Spain, so there is very little flexibilty when it comes to refinancing or trying to modify loan conditions

And they also have a huge stock of property from busted developers, that the banks had been happy to lend millions to in the past

So, they won't play ball if you want to change your loan or remortgage

Valuations are falling faster than Ronaldo when the wind blows

And we are lucky to get 60% loans against these dropping valuations

So, what are they doing with all their stock ?

Simple, offering the units with up to 100% finance at favourable terms

So they can shift their stock, whilst the rest of the market continues to flounder

How can anyone else be expected to buy a property from a private vendor, or a developer, when you can buy a cheaper unit, with better financing, direct from the bank ?


Thanks for reading - send us an enquiry and we'll try and get you a worse deal than the banks will if you buy from them..........................

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