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Case study: Mortgage for British couple in the hospitality industry

Read the case study from our adviser Stevan Paul about how he helped a British couple working in the hospitality industry whose income had been badly affected by the pandemic.

Key characteristics

The worst of the global pandemic is now, hopefully, behind us but the aftermath still affects many people in different ways.

It has been well documented that one of the worst affected industries was the hospitality industry so I had some concerns when I was approached by a British couple who work as restaurant waiting staff, to help them arrange a mortgage in Spain. Their income had been badly affected by the pandemic and in fact one of their employers had gone out of business meaning a quick search for another job in the same line of work.

They had long dreamed of owning a holiday home in Mallorca and contacted Mortgage Direct as they knew they needed a mortgage to achieve this.

I arranged a virtual meeting to gain a better understanding of their circumstances and to discuss their plans in more detail. It was clear from our meeting that both were hard working, had not been deterred by the pandemic and were financially secure with incomes that had now returned to pre pandemic levels. They were determined to follow their dream. But could we convince the bank of this?

They quickly prepared the required documents and information to support their application. My concern was that the bank could view the hospitality industry as an unstable source of income in the current climate, so my report to the bank included my reasons for supporting their case. 

It would not have been a surprise if the bank had raised questions about the viability of this application. But no, within 5 days the bank confirmed that the full amount of the mortgage requested, up to 70% of the purchase price, had been approved.

The bank in Spain trusted Mortgage Direct and had used their discretion, had understood the effects of the pandemic and taken into consideration the whole picture where a banks algorithm may have just said ‘no’. 

Trusting in the services provided by Mortgage Direct clearly benefited this couple. Had they approached banks directly the outcome could have been very different. 

At Mortgage Direct we will always add extra support to your case if we believe there is a real chance of success and will know which banks to approach to suit your circumstances.

My clients are now actively searching for their dream holiday home in Mallorca and I look forward to assisting them with their purchase right up until completion.

Stevan Paul Mortgage Adviser CeMap

Over thirty years financial services industry experience in the UK, performing Advisory and Management roles with leading UK Institutions including Nat West Bank and Britannia. More recently, he has been working as a self-employed Mortgage and Protection Advisor. He holds the UK Financial Planning Certificate and CEMAP qualifications.

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Mortgages taken out in currencies other than the currency in which you earn are considered Foreign Currency Mortgages. Changes in the exchange rate may therefore increase the equivalent value of your debt. Under the Mortgage Law 5/2019 banks in Spain have introduced mechanisms to protect consumers from exchange-rate risk. For more information, please speak to your broker.

Mortgage Direct, S.L. is a company registered in the Registro de Intermediarios de Crédito Inmobiliario del BdE with the nº D108.

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