 Spanish Banks and Mortgages
A collegue remarked that local banks are touting anxiously for more mortgage business. Rather strange under the circumstances?
Not really! Of course the banks have to keep lending because that's the only way they make any real money.
When it comes to a loan or mortgage in Spain the branch/manager just earn a commission and/or setup fee. We all know how high these are.
Northern Rock lost it because they were brokering too much risky
buisness with other bank's money and those banks and Joe Public took their money away.
However UK property has not crashed, is not likely to and everyone is trying to "steal" Northern Rock - because it is still a going concern!
Even the problem in the USA was not as severe as here because they
managed to avoid a crash.
In countries with a housing defecit, when values fall, renting investors start buying - simply because people have to have somewhere to live.
Spain has a housing SURPLUS - 3,000,000, and counting! Renting
investors are not going to save them and tourist renting is also up the creek without a paddle because of the surplus.
I think now that a crash is inevitable but I agree that it won't be that bad everywhere.
All the same we have to do everything we can to get sellers to reduce or remove from sale.
I guess that most Spanish banks will survive.
Meanwhile on a lighter side try the Norther Rock poll.
I lost it, where did it go!
Last edited by Homefinder; 12-05-2007 at 08:16 PM.
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