In Spanish “Hipoteca”
Offer in principle:
In Spanish “Oferta Vinculante”
Early Repayment Fee:
In Spanish this is called “Comision de amortización anticipada”
Loan to Value (LTV):
The relation between the loan and the value of the property. The bank will loan you up to a certain percentage of the value of the property you’re purchasing. The exact figure will depend on the specific circumstances of the individual.
Debt To Income (DTI):
The relation between your income and your loans. The banks will only accept that you pay up to a certain percentage of your gross income to pay off loans.
Subrogation of a Mortgage:
Change your mortgage to another bank. Note that this will imply certain fees to be paid.
TAE (Tasa Anual Equivalente):
To know the actual cost of the mortgage TAE is the number we need to study. The TAE is the result of a mathematical formula which includes the interest rate, the commissions and the term of the operation.
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After roughly 2 years delay, the new mortgage law has been approved and should come into effect by June 2019. But what does it mean and how will it affect mortgages in Spain? In this article, I will cover what I believe to be the 10 main aspects of the new...read more