Abstract:
In this paper we will discuss about the Spanish mortgage market. The market is growing and demand for mortgages are increasing rapidly. The International Mortgage Solutions Ltd is taking care of the lending. Many Spanish and as well as international banks offer a wide range of mortgage products.
In Spain, the mortgage market is growing significantly and many lenders are ready to offer a wide range of mortgages. The number of foreign property purchase have increased of late and the demand for mortgages are expanding rapidly. Several national and international banks, for example, Lloyds TSB, in Spain offer mortgages through the mortgage brokers or lenders.
The mortgages in Spain differ in terms of price. Different banks offer different kinds of mortgages. Moreover, the type of mortgages differ from one branch to another.
Mortgage rates in Spain usually vary and competition among the banks is very tight. Even the constructors are used to finish the mortgage agreement with banks before completion of any property, like home.
The Spanish government is thinking of mortgage funding. The Spanish mortgage market law have determined the legal framework of the mortgage market. International Mortgage Solutions Ltd of UK has several offices in Spain which deal with all the lending.
In 2002, the total amount of outstanding mortgage loans was 305 million euros and in 1998, Spain was
the 5th country in Europe who used mortgage bonds.
Classification of Mortgage:
In Spain, mortgages are of two types. These are:
- Fixed Rate: In case of fixed rate mortgages, the customers have to pay high interest rates but on an installment basis.
- Variable Rate: In Spain, the majority of the mortgages are of this type. In this case,mortgage repayments will vary in accordance with the base rate determined by the European Central Bank.