As the number of Spanish properties sold to non-residents continues to grow rapidly, so too does the need for professional and honest mortgage advice. The bad news is that there is absolutely no regulatory body overseeing mortgage advisers in southern Spain.
All but the smallest minority operate without adhering to any guidelines or codes of conduct. Many brokers are not independent and are funded or partly owned by real estate companies. Some brokers don't even have an office and operate out of a back bedroom. The sad reality is that some real estate agents don't particularly mind if their preferred mortgage adviser behaves slightly unethically as all they want is the customer to buy that property so they can get their commission.
All but the smallest minority operate without adhering to any guidelines or codes of conduct. Many brokers are not independent and are funded or partly owned by real estate companies. Some brokers don’t even have an office and operate out of a back bedroom. The sad reality is that some real estate agents don’t particularly mind if their preferred mortgage adviser behaves slightly unethically as all they want is the customer to buy that property so they can get their commission.
By the same token, the money that some brokers earn from arranging a mortgage is too tempting to jeopardise by sticking strictly to the straight and narrow. One per cent is a standard broker fee payable by the customer and the bank also gives the broker another one per cent or so on top. This means that for the privilege of setting up a 500,000 euro mortgage, Mr Plumber-by-Night-Mortgage-Broker-by-Day could earn 5,000 euros from the client and 5,000 euros from the bank, a grand total of 10,000 euros. If you’re a one man band, that’s a pretty good wage for a few days’ work.
