What a competitive mortgage market looks like: Spain

Brendan Burgess

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http://www.bloomberg.com/news/artic...ge-market-is-rising-again-as-ecb-injects-cash

"Santander is now marketing a variable rate mortgage at Euribor plus 1.25 percentage points (1.41%). Bankinter offers mortgages at 1.5 percentage points over Euribor(1.66%) while ING Espana has cut its mortgage rate to Euribor plus 0.99 percentage points from ( 1.15%) 1.89 percentage points a year ago."

These are tracker mortgages i.e. they track Euribor which is currently 0.16%

Brendan
 
Brendan that is interesting but are they actually trackers or do they have the so called floor clause where you have to pay a minimum. Banks in Spain will not change these even though there is a supreme court decision and people who are affected have to pay thousands to take individual actions.
 
Perhaps the competitive market in Spain is something to do with the high level of repossessions and the low level of arrears

[broken link removed]

http://www.irishtimes.com/opinion/cliff-taylor-crunch-time-on-mortgage-arrears-1.2147284
 
Delboy

That is a great graph. Really sums it all up.

The failure to allow repossessions does account for some element of the higher interest rates in Ireland. But only at high LTVs. It should have no effect at 50% LTVs where the losses due to default are close to zero.

Brendan
 
Would a Spanish bank issue a mortgage to an Irish person (with all income from Irish sources) to purchase a property in Spain?
 
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