100% mortgage

Information and questions about the Law in Spain and Andalucia.
morlandg
Resident
Posts: 574
Joined: Sun Feb 27, 2011 10:15 am
Location: Velez Malaga

100% mortgage

Postby morlandg » Tue Jun 21, 2011 8:23 pm

My son asked me today how much he would need to 'have in his pocket' for a 100% mortgage for a property of say 100K. Presumably he would have to pay for the expenses involved. Does anybody have any idea how much he would have to pay up front?

scotty
Resident
Posts: 1017
Joined: Wed Apr 08, 2009 10:07 am
Location: Dublin / San pedro de Alcantara.

Re: 100% mortgage

Postby scotty » Tue Jun 21, 2011 9:56 pm

100% is the worst type of mortgage. If he needs it then he cant afford it. In the current times it is suicide.

frank
Andalucia Guru
Posts: 3784
Joined: Fri Jun 18, 2004 9:18 am

Re: 100% mortgage

Postby frank » Tue Jun 21, 2011 10:07 pm

Does anyone give out 100% mortgages nowadays? :?
Regards, Frank

No soy residente, simplemente un turista, ¿qué sé yo?

julian
Andalucia Guru
Posts: 5976
Joined: Fri Jul 02, 2004 8:38 pm
Location: marbella

Re: 100% mortgage

Postby julian » Tue Jun 21, 2011 10:26 pm

if it´s a secondhand property calculate approx 10% to 11% ish of the value of the property in costs
is he resident ? how old ?

morlandg
Resident
Posts: 574
Joined: Sun Feb 27, 2011 10:15 am
Location: Velez Malaga

Re: 100% mortgage

Postby morlandg » Wed Jun 22, 2011 6:18 am

Thanks to all. He is resident and 35 years old.
Re -100% is the worst type of mortgage. If he needs it then he cant afford it. In the current times it is suicide.
What is so different between a 100% mortgage and a normal repayment one where you put down a deposit of maybe 40% ?

El Cid
Andalucia Guru
Posts: 15257
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: 100% mortgage

Postby El Cid » Wed Jun 22, 2011 6:38 am

Unless you are buying a bank repossession it will be almost impossible to get a 100% mortgage as the bank will almost certainly value it at less than the asking price.

Sid

morlandg
Resident
Posts: 574
Joined: Sun Feb 27, 2011 10:15 am
Location: Velez Malaga

Re: 100% mortgage

Postby morlandg » Wed Jun 22, 2011 6:41 am

Gotcha!

julian
Andalucia Guru
Posts: 5976
Joined: Fri Jul 02, 2004 8:38 pm
Location: marbella

Re: 100% mortgage

Postby julian » Wed Jun 22, 2011 6:55 am

"He is resident and 35 years old"

shame I think the tax is cheaper for under 35 year olds for properties under a certain price, but check it out...maybe some tippex on the birth certificate may do the trick !!

if you buy a bank repossesion you may even find they will lend to you to cover the costs as well !!!

User avatar
quebin
Resident
Posts: 770
Joined: Mon Apr 06, 2009 10:49 am

Re: 100% mortgage

Postby quebin » Wed Jun 22, 2011 9:46 am

There are flats being offered for sale with finance of 125% in Velez Malaga,there is also a discount on the selling price.There are hundreds of empty newly built flats on the outskirts of town!

User avatar
annfoto
Resident
Posts: 1335
Joined: Sat Dec 19, 2009 5:07 pm
Location: Coin Campo

Re: 100% mortgage

Postby annfoto » Wed Jun 22, 2011 9:56 am

Buying a property in Andalucia is not a very good idea at the moment, prices still have 10 or 20% left to fall.
If the eurozone pack of cards collapses your son could find himself with a 100% Euro denominated mortgage but having to service it with devalued New Pesetas :thumbdown:
Ann

julian
Andalucia Guru
Posts: 5976
Joined: Fri Jul 02, 2004 8:38 pm
Location: marbella

Re: 100% mortgage

Postby julian » Wed Jun 22, 2011 10:15 am


Jool
Andalucia Guru
Posts: 4915
Joined: Fri May 18, 2007 5:56 am
Location: Coastal Almeria

Re: 100% mortgage

Postby Jool » Wed Jun 22, 2011 10:16 pm

if you buy a bank repossesion you may even find they will lend to you to cover the costs as well !!!
Banks are not allowed to do that now in this area anyway and are now refusing to offer more than 60% of existing mortgage as a subrogation. Even where 100% mortgages are offered on developments or apartments that have been re-po´d they are not offering to cover the taxes and costs as well.
New peseta
- hmm that is a VERY worrying thought, but for those with income in sterling wouldn´t the better exchange rate of sterling to new peseta off-set the new peseta to euro rate?

User avatar
janda_grant2
Resident
Posts: 1060
Joined: Mon Apr 07, 2008 12:21 pm
Location: Kirton, Lincs

Re: 100% mortgage

Postby janda_grant2 » Thu Jun 23, 2011 12:35 am

The maximum a bank will lend on a fincas rural is 50% (if anything at all)
I can spell but I can't type

julian
Andalucia Guru
Posts: 5976
Joined: Fri Jul 02, 2004 8:38 pm
Location: marbella

Re: 100% mortgage

Postby julian » Thu Jun 23, 2011 5:56 pm

if a bank (in any area) already owns by repossession a certain property it will bend over backwards to get it sold, even if it means giving a 120% mortgage to cover the costs as well...whether it is rustic, urban, or on the moon....

Bowler
Resident
Posts: 295
Joined: Sat Nov 27, 2010 1:53 pm

Re: 100% mortgage

Postby Bowler » Thu Jun 23, 2011 9:50 pm

I agree with Scotty, El Cid and Annphoto, to take out a 100% mortgage under any circumstances is suicidal, the current (and most practical) trend is renting, wait till he has 50 grand in the bank then he can think about buying a 100 grand property.
Sorry if this sounds like raining on your (or his) parade but it's true.

Jool
Andalucia Guru
Posts: 4915
Joined: Fri May 18, 2007 5:56 am
Location: Coastal Almeria

Re: 100% mortgage

Postby Jool » Fri Jun 24, 2011 2:05 pm

Julian - you are talking rubbish, the banks are being a lot more strict now.......local branches may say yes but head office no longer goes along with this, as they need to break the cycle of unmanageable debt. The only possible exception is if a price achieved is significantly below any realistic market value in which case the bank´s risk is mitigated. What people forget though is that the lower the banks prices are, the more the previous owner is likely to be chased for the shortfall

julian
Andalucia Guru
Posts: 5976
Joined: Fri Jul 02, 2004 8:38 pm
Location: marbella

Re: 100% mortgage

Postby julian » Fri Jun 24, 2011 2:52 pm

"The only possible exception is if a price achieved..."

so it is possible and allowed then...make your mind up dear.


"The only possible exception is if a price achieved is significantly below any realistic market value in which case the bank´s risk is mitigated"
.......all the bank´s repossessed properties are being sold at prices "significantly below any realistic market value "..that´s why people are buying a repossessed property from the bank in the first place.

go talk to the bank and ask to buy one of their repossessed properties with a mortgage to cover the costs as well......they will drag you to the notary....unless they recognise you when you walk in the door maybe.
head office is putting pressure on them to move these properties, they are banks , not property owners.

I´m not saying it´s good, but it´s the way it is.

User avatar
Mowser
Andalucia Guru
Posts: 6388
Joined: Thu Sep 27, 2007 10:42 am
Location: Torre del Mar

Re: 100% mortgage

Postby Mowser » Fri Jun 24, 2011 5:55 pm

Bank repossessions are being sold with AT LEAST 100% mortgages.
Dave

julian
Andalucia Guru
Posts: 5976
Joined: Fri Jul 02, 2004 8:38 pm
Location: marbella

Re: 100% mortgage

Postby julian » Fri Jun 24, 2011 6:03 pm

the real estate agents , and even private sellers are having problems with the banks at the moment... as when the real estate agent finds a client who wants to buy a certain property, the buyer goes to a bank to ask about the possibility of getting a mortgage on this property..the banks make it almost impossible..but at the same time, knowing they have a serious buyer sitting in front of them, they offer the buyer the possibility of buying one of their own repossessions, and at 100% mortgage, and even a mortgage to cover the costs as well..this is happening regularly, to both real estate agents and private sellers...they are doing all the work finding a buyer and the bank is nicking the buyer !!!


here´s one for you to Jool
http://www.yaencontre.com/details/view/ ... -100/pr/14

markwilding
Andalucia Guru
Posts: 7167
Joined: Fri Aug 14, 2009 11:02 am
Location: Bilbao Spain

Re: 100% mortgage

Postby markwilding » Fri Jun 24, 2011 6:48 pm

If someone can afford to pay,a 100 percent mortgage makes good business sense to me provided you are in it for the long term and not trying to make a quick buck. The problem isn't the percentage but more the amount, borrowing more than you can really afford.
Trying to build up a big deposit can backfire if the prices suddenly rise. Back in the early ninties in the UK many experts predicted that houses wouldn't rise for 20 years. they didn't for 3-4 years but in the next 6-7 years they rose 150 per cent.


Who is online

Users browsing this forum: No registered users and 2 guests