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October 2007

29.10.2007 - Stricter Mortgage Lending Criteria

 

Banks in Mallorca are introducing stricter criteria when it comes to mortgage lending as a consequence of the slow down in the market & higher risk of bad debts within their loan books.

These changes are those being seen throughout Spain and Europe as a consequence of the real estate market slowdown and are in line with what is usual at this stage of the market cycle. "The mortgage market remains competitive with good deals still available it is just that rather than chasing business in terms of the number of mortgages they can complete banks are looking much more at the quality of the client" says David Novi.

"We always recommend that clients line up their finance on an "in principle basis" prior to seriously commencing a property search and this is even more relevant when the banks introduce tighter lending criteria" continues David. "Not only does this avoid the risk of disappointment if banks offer less than that required for a successful purchase it also allows buyers to negotiate harder in the knowledge that the finance is in place and they are able to proceed quickly. This can be very helpful in a market where buyers are starting to get the upper hand"

 Please contact us should you wish to discuss your mortgage funding requirements or complete our free Mortgage Quotation Form