The Butterfly Children’s Charity was created to improve the quality of life for children with Epidermolysis bullosa (EB), a rare genetic condition that causes the skin to be as fragile as a butterfly’s wing.
Fluent Finance Abroad is very happy and proud to report that Marc Damian Elliott de Lama (owner of FFA), Ainara Anacabe, Eva María Perdigones and Ronald Kubiak 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…
ince 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.
In continuation in our series of articles,Fluent Finance Abroad offers a quick insight into another type of mortgage claim, more uncommon than the ones described in our previous series of articles about mortgage set-up expenses and the famous clausula suelo. Today we are talking about Multi-Currency Mortgages, Foreign Exchange Currency Mortgages or as they are named in Spain, hipotecas multi-divisas.
If you are being put off buying a Spanish property because of the drop in the value of the pound you need to read our Anti-Brexit Spanish Mortgage Strategy carefully.
You may feel that property prices in Spain will be affected by fewer British buyers coming into the market although it is important to bear in mind that there are still many nationalities eager to purchase here and in particular French, Belgians, Germans, Scandinavian, Eastern European / Russian and Middle Eastern clients. We even have buyers from Australia, New Zealand, North America / Canada & South Americas getting involved in the Spanish property market.