Mortgage Direct asks that all the parties wishing to proceed with a formal 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 quotes. We charge an initial fee (Administration Fee) only once you decide to proceed with a formal application. By signing this document you are appointing Mortgage Direct to oversee your mortgage application.
Terms of payment
1. Administration Fee:
This fee of €495 is payable to proceed with a formal application. It has a money-back-guarantee (see our refund and cancellation policy) below) and covers our services up until you actually purchase a property. It can cover multiple applications with different banks or for different properties. It does not have an expiry date either, so we only charge it once.
2. Arrangement Fee:
This fee is payable upon approval of the mortgage. The standard amount is 0,5% of the mortgage amount (minimum €1.000). For larger mortgage amounts, depending on the amount of work involved, this fee may be negotiable.
We have various payment methods and your adviser will confirm these to you in writing.
Following receipt or proof of payment:
- Mortgage Direct will confirm the recommended bank (or banks) and either puts you in contact with them directly or deals with them on your behalf to commence the process of applying formally for the mortgage.
- You will continue working with our advisers throughout the process, as well as being in direct contact with the bank. We will be at your disposal at all times until completion of the mortgage.
- On approval of the mortgage, the Arrangement Fee is to be paid within 7 days.
Terms of business and appointment
- 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 the information the client gives, where possible Mortgage Direct will prepare a mortgage quote and issue this to the client as soon as possible following an initial enquiry.
- The client is responsible for ensuring the information they provide is accurate. 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. Everyone responsible for using the data has to follow strict rules called ‘data protection principles’. They must make sure the information is:
- Used fairly and lawfully for limited, specifically stated purposes.
- Used in a way that is adequate, relevant and not excessive.
- Kept for no longer than is absolutely necessary.
- Handled according to people’s data protection rights.
- Kept safe and secure.
- Not transferred outside the European Economic Area without adequate protection.
- Mortgage Direct will not disclose the name of the lender until the Administration Fee is deposited in their account or proof of payment has been provided. This is to protect the knowledge they have gained from comprehensive research of the market for mortgages.
- Mortgage Direct can give advice on sensible timescales for payment of deposits and completion of the mortgage. We do not accept any responsibility or liability if there are delays.
- The lender is obliged to deduct statutory taxes from the mortgage advance on behalf of the Government. These are the property tax and the mortgage tax. They also deduct other fees, which are confirmed to the buyer and agreed prior completion.
- The taxes payable in respect of the property and the mortgage vary from region to region. In respect of property tax, if you are unsure what the amount is, please ask your lawyer. Shortly before completion, the bank will confirm the amounts payable in respect of both these taxes.
- The client understands that there is a currency risk involved with purchasing a property overseas, when the property value, mortgage and/or income are not in the same currency. If appropriate, the client should take professional advice on this.
- All final offers are subject to a valuation of the property. The valuation cannot take place until the Nota Simple is supplied. 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 you use a lawyer.
- Completion is not possible until the client has obtained an NIE number.
- The lender reserves the right to ask for original copies of all documents, prior to, or on the completion date.
- Interest rates are subject to change at the discretion of the lenders, unless a fixed rate has been agreed. The final binding terms will be provided shortly before completion.
- In Spain, it is compulsory to have buildings insurance when purchasing a property. Also, it is often compulsory to take a life insurance policy through the bank.
- If the client withdraws from the purchase, but subsequently purchases a property at a later date with a mortgage arranged through a bank that Mortgage Direct has recommended and disclosed to the client, the client is always liable to pay the Arrangement Fee to Mortgage Direct within 7 days of approval of the mortgage.
- 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 is not permitted to submit two applications to the same bank simultaneously in Spain.
- Once the client has signed up with Mortgage Direct, the client understands that Mortgage Direct will take care of arranging for a bank account to be set up with the lender(s), if required. For clients of Mortgage Direct, this does not usually require the clients to have a face-to-face meeting with the lender(s). Mortgage Direct offers exclusive mortgage terms that are only possible when the bank account is arranged through its own contacts.
Refund and cancellation policy
- A client can choose to withdraw from the application process at any time and should do so in writing to Mortgage Direct.
- Once a client has signed the ‘Terms and Conditions” document and arranged payment of the Administration Fee of €495, they have appointed Mortgage Direct to oversee their mortgage application(s). From this point, this fee is only refunded under the conditions detailed immediately below.
- Under the conditions of the money-back-guarantee, the Administration Fee is refunded if Mortgage Direct is not able to find a suitable mortgage. A suitable mortgage is one where the conditions match or are better than those quoted when the request for payment is made.
- If the lender provides a mortgage approval that does not match the quote provided prior to the client signing up with Mortgage Direct, and the client confirms they wish to proceed with the mortgage offered by the lender, that mortgage offer is then considered to be a suitable mortgage.
- Other circumstances where the Administration Fee would not be refunded are:
1. If the client or the seller withdraws from the 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.
3. If it transpires that the property the client is buying has been built illegally or has not been fully or correctly registered and this prevents the purchase from going ahead.
4. The client has provided false or incorrect information to Mortgage Direct and the lender declines the mortgage as a result of this.
- Please note that under circumstances where the Administration Fee is not refunded, if the client then goes on to apply for a new mortgage through Mortgage Direct, either for the same property or a new property, the fee is not charged again.