Fluent Finance Abroad was set up by Marc Elliott back in 2006. That was two years before the hit of financial crisis and resulting credit crunch that adversely affected the Spanish property market. Whist many other financial entities sank without a trace, FFA successfully navigated our business, our partners and our clients through that financial storm. We gained a great deal of unique knowledge along the way. Now, 14 years on, we find ourselves entering into an uncertain period once again. This time the Coronavirus epidemic is the catalyst for the tsunami which will wreak havoc across the lending markets and wider economy. While the causes of financial turmoil differ, the fallout, and how best to pilot your way through is a skill which can be learnt. As one of the longest-serving specialist mortgage consultancies in Spain, we use the benefit of experience gained by prevailing through previous trials and tribulations to act as a beacon for our clients guiding them so they do not have to put their purchase plans on hold and can still realise their Spanish property dreams. Read More
The European Court of Justice (ECJ) is set to publish their final ruling on whether Spanish mortgages which have or which had their interest rates set & calculated based on the IRPH index (Índice de Referencia de Préstamos Hipotecarios) are to be deemed abusive. These mortgages could then be deemed unfair, untransparent and therefore an abuse of the consumer.
We hope that you have all had a great festive period and are looking forward to having a fantastic start to the new decade as much as we are at Fluent Finance Abroad. As we begin a new decade, we also see the beginning of a new era within Spanish mortgage lending, and while we all welcome changes which are better in the long term, it does inevitably come at the price of a period of pain whilst the changes are interpreted and adopted by the banks.
Fluent Finance Abroad is very happy and proud to report that Marc Damian Elliott de Lama (owner of FFA), Ainara Anacabe and Eva María Perdigones have taken the new examination course via AFI Escuela de Finanzas and have successfully passed the test and now are fully qualified Spanish mortgage consultants or Intermediarios de Crédito Inmobilarios (ICI’s).
There has been a lot of talk regarding the new Spanish mortgage laws that came into force on the 16th June 2019 so we thought it was about time we addressed some of the major changes that potential or existing borrowers should be aware of…
Since the changes to the mortgage tax rules in Spain back in November 2018 (actos juridicos documentados), which are now in favour of the consumer rather than the lender, we at Fluent Finance Abroad have been busy working on a re-mortgage package specifically designed for clients who are not happy with their current Spanish mortgage terms.
Every year the team from Fluent Finance Abroad likes to help with a bit of sponsorship for Debra Spain and their annual golf event, which is held in Marbella at the Aloha Golf club in Nueva Andalucía.
Our next feature in our series regarding claims against Spanish banks is mortgage interest rates calculated against the IRPH or The Mortgage Loan Reference Index, which was an alternative to the Euribor and is basically another reference for calculation of the mortgage interests. IRPH was sold to the public as a stable and less volatile alternative to Euribor, but resulted to be entirely controlled by the bank entities themselves, being an even more expensive one for customers than the Euribor index. Although, in some sense it is stable: it has always been several points higher than the Euribor and given today’s Euribor historical lows, IRPH is extremely expensive. As an Index it is never fixed, so it should have never been sold as a more stable index than other alternatives.
You may or may not be aware but Spanish lenders have been taken to task since the country’s banking and construction industries nearly collapsed as a consequence of the global credit crisis.
Such was the ferocity of the banks actions, that after mass public demonstrations in 2012, law makers in Spain brought in new rules to help protect borrowers and make it harder for lenders to evict (desahuciar) people from their homes.
The clausula suelo is the most common claim against lenders as this clause would ensure that the interest rate you would pay would never go below a certain level which in most cases have been around the 3 – 5.5% mark. Given that interest rates since 2011 have plummeted and that the EURIBOR is actually below zero, this means that you would be paying an extremely high interest rate compared to current market rates.