The end of 100% spanish mortgage deals forecast

Spanish developers and their funding banks have been successful in selling off key ready apartments with a killer combination of hefty discounts and 100% mortgage offers... But now the banks are starting to withdraw their best Loan-to-value deals.

The 100% mortgage deals that have helped to revitalise the Spanish property market for the last year are coming to an end as the “Sold Out” signs go up on prime seaside developments in Costa Calida and Costa Blanca.

Whole blocks of completed apartments have been sold in the first six months of the year as troubled developers have slashed prices and their funding banks supported them with 100% loan to value mortgage deals in a dash for cash that attracted savvy buyers from Scandinavia, Benelux and Russia. Slow off the mark British and Irish buyers missed out on deals like 2-bed frontline apartments for EUR 108,000 with 100% low interest mortgages.

Offers have concentrated on developments with the best locations, best design, best specification and best prices – a winning combination that banks were willing to enhance with lower risk 100% LTV mortgage offers.

Source: PropertyinSpain.net