Our Fees
Before you decide whether to pay for the services of a Mortgage Broker in Tenerife or not, please read this page carefully in full – it could save you a lot of money.
There are several ways to avoid paying any fees at all for our independent mortgage advice – please contact us for more details and make sure you get the advice that you deserve. Do not be fooled by an agency who offers/insists on arranging your mortgage for you. They make a lot of money from the sale and that is their only motivation. Ask yourself why would an agent do lots of work to make sure you get the very best deal available??? The simple answer is – they won´t and they don´t….
Some clients ask why we charge a fee when estate agents will always offer to help “arrange” a mortgage for you. We will try and explain some of the reasons:
When you wish to purchase a property with a mortgage in Tenerife you have to pay a 10% deposit. If before completion the bank changes their mind or cancels your mortgage offer then you could very well lose that deposit. Your agent will not help you if this happens and it does unfortunately happen quite often. We GUARANTEE that if you work with us from start to finish you will not lose any part of your deposit whether we are able to get you a mortgage or not.
We carry out a full review of the entire mortgage market and can complete a mortgage application and submit to as many as 30 different Spanish banks. If one lender lets you down unexpectedly, we can very quickly switch to an alternative.
We ensure your application is fully and correctly packaged so you fit the lenders criteria before we submit the case – this saves a lot of time and ensures you don´t waste weeks or months with infuriating lenders who will keep you hanging on and hanging on before rejecting your case. We only submit to lenders where we know you will have a very good chance of being successful.
We have a much higher chance of obtaining a mortgage for you than any estate agent or UK Broker because we are completely up to date with market conditions, we know what type of clients the banks here are accepting and what type they are turning down and have access to additional mortgage lenders who have little or no presence in Tenerife.
We can work directly with the underwriters of many Spanish banks, bypassing the local branch networks. Standards can vary greatly from one branch to another (even within the same banking groups) and local branch managers are free to increase your interest rates and setup fees at will in order to boost their branches profitability. We are not bound to any one branch of any bank so can always source the best terms and conditions.
We are representing you and only you. We want to get you the best possible mortgage – not just any old mortgage (which is what you end up with when someone is desperate to close a property sale and get paid.)
We offer you completely impartial advice on ALL aspects of your sale – you do not get this if your estate agent attempts to arrange a mortgage for you. We will provide you with full advice on when to pay a reservation and when to pay a deposit ensuring your money is safe at all times. Most agents will not provide this advice either. In fact, it is usually the kind of information they do not want you to have as once you have paid a deposit they know they are getting paid their 5% commission regardless of whether you get a mortgage and complete on your purchase.
Given the amount of work that goes in to REALLY brokering the Spanish mortgage market and getting you the BEST deal possible, our fees represent excellent value for money.
Whilst an estate agent will offer to do your mortgage for free and convince you you do not have to pay for expert advice, bear in mind they are charging you 5% of the purchase price anyways (nothing is free in life…) Whereas on average our fixed fee represents only 0.6% of the purchase price of your property. That´s right – we charge on average only 0.6% of the purchase price!!!
Compare our average fee of 0.6% to your estate agents charging 5% of the purchase price as a bare minimum!
Now which fee looks like better value for money?
Put another way on an average purchase price of 150,000€ we charge you 990€. Your estate agent charges you 7,500€!!!
Standard Spanish mortgage fees:
- Purchase Mortgage: 990€
- Re-Mortgage: 690€
- Equity release: 990€
If and only if your application is successful and you are offered a mortgage from one or more banks, then the above fees apply.
Most Mortgage Brokers charge a 1% to 2% broker fee. In comparison, our fixed rate offers very good value for money. Our fees are transparent, we disclose any commission a bank may pay us and if we do not successfully obtain a mortgage – you pay nothing!
Complex Mortgages
We charge 0.75% to 1.25% of the loan amount for complex mortgages including the following:
- Mortgages applications through company structures
- Commercial mortgage applications
- Multi-purchase mortgages
- Multi-property mortgages
- Multi-mortgage cases including an equity release and combined purchase
- Other “complex” mortgage cases
These higher fees reflect the vastly increased amount of work required to bring complex cases to completion.
Make sure you get the best possible information and give yourself the greatest chance of obtaining a Spanish mortgage.
