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    Spain & Portugal

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Terms and Conditions

Terms and Conditions

Mortgage Direct requires that all the parties wishing to proceed with a mortgage application sign the declaration below to confirm they have read and understood these terms and conditions.

The term “client” refers to the single applicant or joint applicants who are applying for a mortgage.

Mortgage Direct does not charge for initial advice or quotes. We charge our first fee (the Administration Fee) only once the client decides to proceed past the initial stage. By signing this document, the client appoints Mortgage Direct to oversee their mortgage application(s).

TERMS OF PAYMENT

1. ADMINISTRATION FEE

This initial fee of €695 is payable to proceed with any application to secure an initial or final binding approval, first-stage score or simply to register the client or set up a bank account for them with any lender(s).

The fee covers the work involved in processing the client’s documents, discussing the client profile with the lender(s) and negotiating the terms of the mortgage, as well as arranging the opening of a bank account with the lender and in some cases arranging the valuation of the property for mortgage market purposes.

This fee can cover multiple applications with different banks and/or different properties. It does not have an expiry date, so is only charged once per actual property purchase.

This fee comes with a money-back guarantee  (see our ‘refund and cancellation policy’ below for details).

2. INITIAL APPROVAL FEE

This is a completely separate fee to the Administration Fee and is payable upon initial approval of the mortgage amount, subject only to valuation. This fee is based on your financial profile and not a specific property, even if we submit the details of a property with the application. It is also important to understand that this fee is still due if an initial approval is secured prior to the client deciding on a particular property to purchase.

The standard amount is 0.6% of the mortgage amount (minimum €1.000). Please sign the PAYMENT AUTHORITY form at the back of this document to confirm your acceptance.

This fee is due when your full set of documents has been assessed by the lender’s credit department and they provide confirmation of the initial approval. For off-plan purchases (see below), this fee is due once we have the initial approval and not at the point of instructing the valuation after the property has been built.

Any initial mortgage approval will remain valid until you find, if you have not done so already, a suitable property. If any initial or final binding approval expires, we always aim to renew that approval with the same lender, or if that is not possible for any reason, to carry out a full market review and find an alternative lender.

You will receive the final binding mortgage approval/offer after the valuation has taken place and the FEIN document has been issued.

PAYMENTS TO MORTGAGE DIRECT FROM THIRD PARTIES

If Mortgage Direct will receive a payment from the lender, this will be stated in the official FEIN document provided by the lender to the client prior to completion. The FEIN is a document that complies with European standards and contains all pre-contractual values, including fees charged or to be charged by the intermediary and the lender.

PAYMENT METHODS

We have various payment options and your broker will confirm these to you in writing. You can also find details of these options on our website.

POST-PAYMENT PROCEDURE

Following receipt or proof of payment, the following steps will usually take place:

  1. Mortgage Direct will disclose the name of the recommended bank(s) and issue a list of documents required for the application(s) and start the process of applying for the mortgage.
  2. The client will continue working with our advisers throughout the process, as well as often being in direct contact with the bank. Mortgage Direct will be at the client’s disposal at all times until completion of the mortgage.
  3. On initial approval of the mortgage amount, prior to valuation, the Initial approval fee is to be paid within 7 days.

TERMS OF BUSINESS AND APPOINTMENT

  1. Mortgage Direct provides independent mortgage advice and acts on behalf of the client to find what we believe is the most appropriate mortgage product from the most suitable lender, based on information provided by the client.
  2. Based on the information the client gives, Mortgage Direct will present a recommendation to the client in respect of what it believes is/are the most suitable product(s) and this will usually include a detailed mortgage quote.
  3. The client is responsible for ensuring the information they provide is accurate. If in doubt, the client should contact Mortgage Direct for clarification.
  4. Mortgage Direct will treat all client information as private and confidential, except where disclosure to the proposed lender or lenders is necessary to arrange a mortgage. The full details of our company Data Protection Policy can be found on the Mortgage Direct website.
  5. Mortgage Direct will not disclose the name of the lender until the Administration Fee is deposited in its account or proof of payment has been provided. This is to protect the knowledge gained from comprehensive research of the market for mortgages.
  6. Mortgage Direct can give advice on sensible timescales for payment of deposits and completion of the mortgage. Mortgage Direct does not always recommend that deposits are paid until the final binding mortgage approval is secured and does not accept any responsibility or liability for lost deposits if there are delays in the process beyond its control.
  7. The lender is obliged to deduct statutory taxes from the mortgage advance on behalf of the Government. They also deduct other fees, which are confirmed to the buyer and agreed prior to completion of their purchase.
  8. The taxes payable in respect of the property purchase vary from region to region. If you are unsure what the amount is, please ask your lawyer. Shortly before completion, the bank will confirm the amount payable in respect of taxes, notary, registry, bank fees etc.
  9. The client understands that there is a currency risk involved with purchasing a property overseas, when the property value, mortgage and/or income of the client are not in the same currency. If appropriate, the client should take professional advice on this.
  10. All final offers are subject to a valuation of the property. The valuation cannot take place until an up-to-date Nota Simple (2-3 page document summarising registry information relating to the property) is provided to the valuer. The client is always responsible for payment of the valuation fee, as well as other costs incurred in underwriting the application, such as ongoing legal fees if using a lawyer.
  11. Completion is not possible until the client has obtained an NIE number and this has been registered at the Spanish tax office. Clients should take the necessary steps to obtain the NIE numbers for all applicants early in the process and consult their lawyer if in doubt. Completion is not possible until the client has obtained an NIE number and this has been registered at the Spanish tax office. Clients should take the necessary steps to obtain the NIE numbers for all applicants early in the process and consult their lawyer if in doubt.
  12. The lender reserves the right to ask for original copies of all documents, prior to, or on the completion date.
  13. Interest rates are subject to change at the discretion of the lenders. The final binding terms will be provided shortly before completion.
  14. In Spain, it is a legal requirement to have buildings insurance when purchasing a property. Banks may offer cheaper interest rates in exchange for contracting certain products, such as insurance policies (home, life or health, for example) with their chosen insurers. A life insurance policy may be in the form of a single premium added to the mortgage amount. Mortgage Direct will advise if there are any such products linked to the mortgages it recommends.
  15. If the client withdraws from the purchase, but subsequently purchases a property with a mortgage arranged through a bank that Mortgage Direct has introduced the client to, the client is always still liable to pay the Initial Approval Fee to Mortgage Direct within 7 days of initial approval of the mortgage.
  16. If Mortgage Direct discloses to the client the names of lenders it has applied to or discussed a potential application with on behalf of the client, the client confirms by signing this document that they will not then approach the same lenders directly or via other intermediaries to obtain the mortgage. It should also be understood by the client that it is not permitted to simultaneously submit two applications to the same bank in Spain.
  17. Once the client has signed up with Mortgage Direct, the client understands that Mortgage Direct will arrange for a bank account to be set up with the lender(s), if required. Mortgage Direct offers exclusive mortgage terms that are only possible when the bank account is arranged through its own contacts.
  18. Under current Spanish law relating to mortgages, clients may have to attend the notary office at least 24 hours before the appointment to sign the property and mortgage deeds (when official ownership of the property is granted). At the first appointment, the client is required to sign a legal document confirming they have fully understood the terms of the mortgage.Some lenders will allow lawyers to act on behalf of their clients for these stages of the process, but only with a suitable Power of Attorney in place, which must always be verified by the bank at the earliest opportunity to ensure if gives the lawyer the necessary powers.
  19. Where a client is introduced to Mortgage Direct by a real estate agent, Mortgage Direct might update the agent on the progress of the mortgage application, but will never disclose, under any circumstances, any personal financial information relating to the client.

OFF-PLAN PURCHASES

Where the client is purchasing off-plan, i.e. where the property is in the process of being built or construction will start after the client signs this document, the following terms of business will also apply:

  1. If Mortgage Direct applies for an initial approval at the request of the client, the Initial Approval Fee will still be due within 7 days of the initial approval confirmation from the lender. To be clear, it does not mean that the fee is only due when the valuation is to be instructed. “Prior to valuation” does not necessarily mean immediately prior to valuation.
  2. There might be a delay between securing the initial approval and instructing the valuation. The valuation would usually be instructed once the construction work is completed and the relevant certificates have been obtained from the local Town Hall. Property valuations are usually valid for up to 6 months.
  3. In the event that an approval for an off-plan property expires, there is no guarantee that the lender will re-approve the mortgage but, if the lender later declines the mortgage, Mortgage Direct will re-assess the market free of charge at the time. We do not charge either the Administration Fee or the Initial Approval Fee again if we have to re-apply due to the expiry of an approval.

REFUND AND CANCELLATION POLICY

  1. A client can choose to withdraw from the application process at any time and should do so in writing to Mortgage Direct, however, this does not automatically result in the refund of any fees. In addition, if an Initial Approval Fee is outstanding when a client withdraws from the process, the client must still pay this fee to Mortgage Direct.
  2. Once a client has signed this ‘Terms and Conditions’ document and arranged payment of the Administration Fee of €695, they have appointed Mortgage Direct to oversee their mortgage application(s). From this point onwards, fees are only refunded in accordance with the ‘Refund and cancellation policy’.
  3. Under the conditions of the money-back guarantee, the Administration Fee is refunded if Mortgage Direct is not able to find a suitable mortgage, as agreed/discussed at the start of the process. If the lender provides an initial mortgage approval and the client confirms they wish to proceed, then that mortgage offer is automatically considered to be a suitable mortgage.

Circumstances where our fees (Administration Fee and/or Initial Approval Fee ) would not be refunded are:

  1. If the client or the seller withdraws from the purchase/sale.
  2. If the valuation of the property is lower than the agreed price and this prohibits the client from borrowing the full amount requested, which in turn prevents them from completing the purchase. However, our fees are not charged again if the client then decides to purchase a different property. Mortgage Direct would restart the process at no extra cost to the client.
  3. If it transpires that the property that the client is buying has been built illegally or has not been fully or correctly registered and this prevents the purchase from going ahead. As above, our fees are not charged again if the client then decides to purchase a different property. Mortgage Direct would restart the process at no extra cost to the client.
  4. The client has provided false or incorrect information to Mortgage Direct and the lender declines the mortgage as a result of this. If in doubt, the client should speak to their mortgage broker regarding any concerns they might have prior to processing the application.
  5. If the client is not able to support their income and debt profile with official documents, such as income tax returns and reports from recognized credit reference agencies, where appropriate.
  6. If an initial or final binding mortgage approval has expired (they generally expire after 3 calendar months) and the same lender is not willing to offer the same conditions or declines the mortgage.
  7. If the client themselves or any close family members are blacklisted in any way and/or appear on any international databases as a Politically Exposed Person (PEP) and this is a factor that causes the lender to decline the mortgage.
  8. If a client has missed or late payments, defaults or County Court Judgments (CCJs) on their credit report that were not disclosed to their broker prior to starting the formal application process and this is a factor that causes the lender to decline the mortgage.

HOW TO MAKE A COMPLAINT

If you wish to make a complaint about our service, please use the form attached at the end of this document. We take complaints very seriously and will respond to you within 24-48 hours.

In the first instance, the client should discuss any concerns with their broker.

DECLARATION

I/we (the “client”) confirm that I/we have read the Terms and Conditions and I/we authorise Mortgage Direct to process mortgage applications on my/our behalf.

I/we confirm that I/we understand the charging structure and payment of €695 to start the formal process and I/we also agree to pay 0.6% of the mortgage amount (minimum of €1.000) upon initial approval of the mortgage, subject only to valuation, in respect of Mortgage Direct´s Initial Approval Fee. I/we understand that this Initial Approval Fee is due within 7 days from date that the initial approval is given.

First Applicant

Name: __________________________
Address: ________________________
_________________________________
Passport Number: ________________
Signature: _______________________
Date: ______ / _______ / ___________
Signed on behalf of Mortgage Direct: ___________________________________

Date: ______ / _______ / ___________

Second Applicant (where applicable)

Name: __________________________
Address: ________________________
_________________________________
Passport Number: ________________
Signature: _______________________
Date: ______ / _______ / ___________
Signed on behalf of Mortgage Direct: ___________________________________

Date: ______ / _______ / ___________

Registered office:

Mortgage Direct SL
E-mail: info@mortgagedirectsl.com
C/Caballeros 37-2 Web: www.mortgagedirectsl.com
46001 Valencia Tel: 0034 963 156 011
Spain

Registro Mercantil de Valencia. Tomo: 8371, Libro: 5662, Folio: 108, Hoja: V-111104.

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED ON IT.

COMPLAINT FORM

Complaint to the claim manager of Mortgage Direct

Client (complainant) details :

Full name :

Passport / NIE :

Full home address :

Telephone number :

E-mail :

Nationality :

Name of mortgage adviser against which the claim is being made :

Have you filed legal proceedings against Mortgage Direct or the adviser?

Y / N

Brief summary of your claim :

Amount of your claim :

Please send your claim by e-mail to : info@mortgagedirectsl.com

  • We will take your complaint seriously and you will receive a written reply by e-mail within 24-48 hours.
  • Please provide any supporting documents you believe will support your claim.
  • The claimant states that the issues raised in the claim have not been object of litigation or challenge before the Courts of Justice, nor are they pending resolution by an administrative, arbitral or judicial body.