Beware! - Important Information You Must Know about Mortgages in Spain

The Spanish mortgage market differs from the UK mortgage in one very significant way, regulation or rather the lack of it! In the UK, the financial services industry became regulated in 1988 and mortgages themselves came under regulation in the last couple of years. All UK advisors must be qualified and must adhere to a strict code of ethics and procedures set out under the Mortgage Code. This regulation provides the consumer with the peace of mind of knowing what fees they will incur, what type of product they are getting and that they have recourse under law if it can be proved they did not receive 'best' advice. This move was emulated by US banking laws, which in effect put regulations on the procedures they go through for their loans. In Spain, there is NO regulation whatsoever and it is important that you are aware of this.

Smart Spanish Mortgages are often appalled at some of the horror stories our clients sometimes have when they come to us. Many people claiming to be 'professional' mortgage advisors have no qualifications whatsoever, operate from their kitchen table and have been kicked out of the industry in the UK for unprofessional conduct or failing the new exam structures. One of the most common tricks is to tell you that they are only charging a very small fee and then a day before completion, presenting you with an invoice many times bigger, knowing that you are in no position to argue as you have exchanged contracts and must complete. If you don't pay the bill, they threaten to have the mortgage offer withdrawn! Another trick is to fabricate payslips and P60's often without you knowing! You then think that they have got you a fantastic deal especially as you are self-employed or didn't think you earned enough to borrow what you wanted. This is extremely stupid and dangerous especially if in the future the bank or tax authorities retrospectively look into your case. You could go to prison for fraud and / or obtaining monies by deception. You may think that this sounds ludicrous but believe us, it happens.

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