Spanish property investors 'could be boosted by police crackdown on false mortgage applications'
Property investors in Spain could be boosted by the news that Spanish police have targeted a mortgage broker suspected of supplying false documentation to banks to sell mortgage products to buyers.
International Mortgage Solutions (IMS) welcomed the action, citing the fact that consumers are often left unprotected by dubious transactions between unregulated brokers and banks, with some buyers unwittingly being at risk of repossession.
Often property investors may be offered what seems like a very attractive deal in the belief that it is a self-certified or non-status mortgage, when in fact they are getting a product that might not even exist, according to Easier Property.
Helen Chambers, director of IMS, remarked: "We are very happy that Spain is finally getting to grips with this practice. We get very concerned when a client we have been dealing with gets a quote from another practitioner for something we know is not achievable within the boundaries of the law."
She also noted that it is "hugely important" that clients are not misled in their efforts to finance Spanish property and concluded by expressing her hope that the legal system would continue to crack down on mis-selling practices.
A recent report from Banco Halifax Hispania revealed that Spain is a popular investment destination for people aged under 55, despite the country's reputation as a retirement haven.
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