Are you dreaming of buying a home in Spain? If so, then finding the right mortgage broker for a home purchase in Spain is extremely important.
With its rich history, stunning architecture, picturesque scenery, friendly locals, and amazing cuisine, Spain has long been a dream destination for overseas buyers looking for their fantasy home in the sun. The main downside is getting to grips with the complex Spanish mortgage system.
Dealing with the Spanish banks as an overseas buyer is notoriously difficult, which is why it’s so important to find the right mortgage broker. With so many different types of mortgage broker to choose from however, it can be a little overwhelming. This is why we’ve compiled this handy guide today.
Whether you’re looking to relocate, purchase a holiday home, or invest in Spanish property, here’s a look at how to choose the right mortgage broker for a home purchase in Spain.
How do mortgage brokers operate?
Before we can look at things to watch out for when choosing a mortgage broker to finance a Spanish property, we first need to understand exactly what mortgage brokers are and how they operate.
Basically, mortgage brokers serve as intermediaries between potential buyers and potential lenders. Their primary objective is to help ensure that prospective buyers are able to secure the financing needed to purchase the property they’ve had their eyes on. Very simply, it is their goal to ensure that you get a mortgage at the best rates possible.
A mortgage broker is very important, especially for overseas buyers as dealing with Spanish banks can be testing. Factor in issues such as language barriers, and a lack of understanding regarding different forms of income and foreign tax issues, and you can see why mortgage brokers are so important.
How to choose the right mortgage broker for a home purchase in Spain
With numerous mortgage brokers available, it’s vital to choose one that aligns with your needs. Here are key factors to consider:
1. Look for hands-on mortgage broker
First and foremost, when searching for a mortgage broker to help finance a property purchase in Spain, look for brokers that are decidedly more hands-on.
Free brokers for example, may be useful for prospective buyers on a strict budget, but they generally don’t study each case individually or provide advice. They simply submit the case to the banks. This not only reduces your chances of getting approved for a mortgage, it also means you’re unlikely to receive the best rates.
Ideally you want a broker that is much more hands-on. By this, we mean that they’ll not only offer you advice based upon your own personal circumstances, but they also oversee the purchase throughout the process until completion. They’ll also keep you updated every step of the way.
2. Ensure they’re regulated and possess the necessary qualifications
Another couple of important considerations when it comes to choosing a mortgage broker are whether they’re regulated by the Bank of Spain, and whether they possess the necessary credentials and qualifications.
If the mortgage broker in question does not possess a Mortgage Broker Qualification and/or is not regulated by the Bank of Spain, you will not be legally or financially protected. They should also possess a public liability certificate.
Finding a regulated broker with the necessary qualifications is essential as, in Spain, once an offer on a property is accepted, the buyer must pay a non- refundable deposit. A great deal of prospective buyers in Spain are therefore losing a lot of money by going with the wrong broker.
3. Find a mortgage broker that prioritizes data protection
Despite the GDPR act coming into effect in 2018, a great deal of organizations are still failing to implement the necessary safety measures when it comes to data protection.
A great deal of less-reputable brokers out there simply do not have the necessary online safety and security measures in place. Not only that, but they are also unsure of how to handle sensitive and personal information, including financial info.
As you know, when dealing with property, we aren’t just talking a few hundred Euros, we’re talking hundreds of thousands, if not more. The last thing you want is for your personal and/or financial information to fall into the wrong hands because your chosen mortgage broker didn’t implement the necessary online safety measures.
When choosing a broker for financing a property purchase in Spain, look for brokers that prioritize date protection and place an emphasis on online safety and security.
4. Read reviews and ask for recommendations
Of course, when searching for a mortgage broker in Spain, another useful tip for anybody looking to find the right service is to read reviews and ask for recommendations.
Before you commit to hiring a mortgage broker, take the time to scour the web and read reviews of prospective brokers left by previous clients. If a broker catches your eye, and you see they have a large number of reviews which are primarily positive, this is of course a good sign. On the flipside, if you see a broker and notice how a large percentage of their reviews are negative, this should serve as a red flag and set alarm bells ringing.
Another handy tip is to simply ask for recommendations. Find other people who have been in a similar situation to you, ask them which broker they used and whether they’d recommend them again. As well as asking in person there are various forums and social media pages out there that you can use for recommendations too.
Conclusion
As you can see, when it comes to mortgage brokers in Spain, there’s a lot to consider before you commit to hiring one.
Because the Spanish banking system can be so confusing, and because there are so many different brokers to choose from, it’s important to do your research and find the best broker you can.
Ideally, look for a large, qualified, experienced, and reputable mortgage broker such as Mortgage Direct. With nearly two decades worth of experience, and countless happy customers we can guide you every step of the way and help make purchasing your dream Spanish home a reality.
Complete my mortgage affordability-check form