Tancrede de Pola (OP Columnist)
THE property market’s resurgence is showing no signs of slowing down, so now really is the time to buy… but be warned, an air of caution must be still be applied.
With banks waging war to offer the most attractive mortgage rates, buyers can easily get carried away.
That is where the broker comes in: to highlight any hidden fees or compulsory add-ons tucked away in the small print and ensure you get the best possible mortgage rate to suit your needs.
Trap-related products
When contracting a mortgage you need to be aware of any ‘hidden’ add-ons or trap-related products in the small print.
These will be additional products attached to your mortgage and usually include insurance policies.
It is important to know exactly what is attached to your mortgage. What may seem like a great rate can be soured by expensive – and sometimes unnecessary – insurance packages.
Using a broker will save both time and money as they will be looking out for these hidden add-ons and, ways to lessen their impact.
Thankfully at the Finance Bureau we have recently launched an insurance arm and can therefore guarantee you the best deal not only on mortgage rates but also on insurance policies; be it home, life, health or building cover.
Fees charged but not published
While the vast majority of banks specify the fees and commissions they charge, not all of these costs are always declared.
Many financial institutions refrain from publishing less known fees such as early redemption charges. These are, however, regulated by law, and may not exceed 0.50% for the first five years and 0.25% from the sixth.
It is advisable to ask the bank to specify all commissions and how many there are, before signing the contract. This will spare you unwanted surprises down the road.
But the best way to ensure a good mortgage that does not hide anything in the fine print, is to solicit the help of a mortgage broker.
“the property market is in full swing”
Hmm, I walked past at least 100 flats and apartments for sale on one high street today, all for sale, and all have been on sale for at least 5 years. Property sales may be up, but it will take decades for all this empty stock to be sold. Most of the comments from agents are laced in hyperbole.
“the property market is in full swing”
Hmm, I walked past at least half a dozen properties with “sold” signs on them so it must be true.
Never seen a “sold sign” in Spain Dref lol.