by Grupo VAPF | Oct 8, 2010 | Uncategorized
Mortgages in EUR: a safe choice for EUR earners
Foreign currency mortgages are a high-risk investment out of the GBP-EUR circuit. The Spanish Consumers and Users Association (OCU in Spanish) confirms through a study that these mortgages have translated into great losses for their holders. A good example of this is the JPY-based mortgages for EUR earners: Their mortgages have increased a 25% on the last year.
The risk of foreign currency mortgages resides in the currency fluctuations, more significant than the changes on internal interest rates. The OCU accuses financial institutions of misleading clients by omitting information and not mentioning that the continuous revaluation of the EUR could only mean a high risk of later devaluation.
by Grupo VAPF | Sep 8, 2010 | Mortgages, Mortgages, Mortgages, Mortgages, Mortgages
Be aware of the subrogation and novation commissions applied to mortgages
When it comes to signing a mortgage, it is important to pay special attention to all the commission expenses that we could come across during the mortgage duration.
The subrogation fee is a percentage of the outstanding capital to be paid in the case of changing banks without cancelling the mortgage. The reason to change banks in most cases is down to taking advantage of more advantageous terms, but when it comes to numbers this commission has to be taken into account in order to make a real assessment.
by Grupo VAPF | Aug 5, 2010 | Uncategorized
Ensure you negotiate well your mortgage conditions
When choosing between mortgages, you have to study and negotiate the fees that the different financial institutions establish. Amongst the many different charges they apply, today we will highlight the commission paid on partial or early repayments and the full cancellation fee.
Although at the time we formalize the mortgage we do not take into consideration the option of early repayments, we have to negotiate the commission the bank will apply, since the life of the mortgage is very long and situations may vary.
by Grupo VAPF | Jul 5, 2010 | Uncategorized
Read your mortgage conditions carefully
What should we read carefully when taking out a mortgage? Experts say there are three key aspects to bear in account when taking out a mortgage and which should be compared between banks.
One of the points the experts continue to stress is the clause concerning the interest floor rate, which prevents the user to enjoy a rate cut beyond the level specified in the mortgage itself. According to the Bank of Spain, 29% of the mortgages granted to Spanish families do not benefit from interest rate cuts.
by Grupo VAPF | Jun 16, 2010 | Uncategorized
Taking out mortgage insurance
Mortgage insurance is one of the formulas used in recent years because it allows the insured to protect oneself from the risk of defaulting on monthly repayments. Many banks do not consider it mandatory to issue mortgage insurance, however the number of people who take out this kind of insurance policy is on the rise as in the current economic situation it provides peace of mind with regards to the prospect of becoming unemployed or not being able to meet the monthly repayments due to a rise in interest rates.