👇DERRUMBE DE LAS HIPOTECAS FIJAS ‼️

Summary

This video provides essential advice for individuals seeking self-build mortgages in Spain. It emphasizes the importance of having a realistic construction budget and accurate land valuations, warning against underestimating costs to avoid issues with banks. The speaker explains how banks assess the total value of a project, including land and construction costs, and outlines the risks of prefabricated homes that lack proper foundations. It also touches on how high interest rates can be used by banks to discourage risky projects. Finally, the speaker highlights the financial challenges families are facing in Spain, offering practical tips for navigating the mortgage process.

Takeaways

• 😀 Understanding the importance of accurately preparing a budget for construction projects is crucial, especially when applying for mortgages in Spain.
• 🏠 Banks often require a solid construction budget that aligns with actual costs, not inflated numbers meant to reduce tax burdens.
• 💸 Self-promotion mortgages (autopromoción) can be rejected if the project seems financially unrealistic or misaligned with the land's value.
• 🏦 The bank evaluates the total cost of the construction, including both the land value and the construction budget, to determine mortgage eligibility.
• ⚠️ Some banks set high-interest rates for projects that they want to dissuade, making certain construction projects financially unfeasible.
• 🛠️ Prefabricated homes may face challenges when financing, especially if they lack proper foundations or are built with unstable materials.
• 🔨 A solid foundation (cimentación) is critical for banks to consider financing for prefabricated homes or modular constructions.
• 🏚️ Non-traditional homes made from flimsy materials (e.g., plastic modular homes) are typically not accepted by banks for mortgage approval.
• 🏗️ Banks will finance prefabricated homes only if they meet certain construction standards, particularly those that use durable materials like concrete.
• 💡 It is essential to ensure that the property being financed, whether newly built or prefabricated, can be resold or used as collateral in case of default.
• 💼 Self-promotion mortgage applications should always be transparent and include a realistic and well-planned budget to avoid complications with the bank.

Q & A

What is the importance of the constructor's experience in self-promotion mortgages?

The experience of the constructor is crucial because banks want to ensure the project is completed on time and to the required quality. The constructor should have a proven track record and be able to provide relevant documentation to the bank.

How does the cost of construction impact the mortgage approval process?

The mortgage amount is typically based on the construction cost plus the value of the land. Banks will not approve a mortgage for an inflated value that does not align with the actual cost of construction. For example, if the construction cost is significantly lower than the estimated final value of the house, the bank may reject the loan.

What should be considered when choosing a constructor for a self-promotion project?

It is essential to verify the constructor's experience, their track record, and the quality of the materials they use. Additionally, it’s important to ensure that the constructor is capable of sticking to the agreed-upon budget and timeline.

What are the risks of providing an inflated construction budget to the bank?

If the construction budget is artificially inflated to reduce tax liabilities or to manipulate the mortgage amount, banks will reject the application. They base approval on the actual cost of construction and land value, not on inflated figures.

What happens if the final value of the property exceeds the initial construction estimate?

Banks will base the mortgage approval on the actual construction and land value, not on the final market value. If the value is inflated beyond reason, the mortgage application may be rejected or the bank may impose higher interest rates due to perceived risk.

How does the location and value of the land affect mortgage approval?

The land value plays a critical role. Banks will evaluate whether the completed property will have a market value sufficient to cover the loan in case of default. For example, building a high-cost home on inexpensive land may lead to a rejected mortgage, as the final value may not align with the bank's expectations.

Are prefabricated or modular homes eligible for mortgage financing?

Some banks do finance prefabricated homes, including passive and wooden houses, but this is not universal. The financing eligibility depends on whether the home has solid foundations and meets the bank's requirements for structural integrity.

What is the significance of solid foundations for prefabricated homes in mortgage approval?

Solid foundations are crucial for mortgage approval because they ensure the house is structurally sound and not just a temporary or unstable structure. Without proper foundations, the bank may not approve the mortgage, regardless of the type of house being built.

How do banks determine the mortgage value for a self-promotion project?

Banks typically offer 80% of the total value, which is calculated from the land value and the construction cost. The final valuation includes the cost of materials, labor, and any other additions like a pool or kitchen, and this amount must align with the bank’s standards for the area.

Why might banks offer high-interest rates for certain self-promotion projects?

Banks may offer high-interest rates to dissuade risky projects that do not meet their standard criteria. For example, if the project involves unusual or non-traditional housing types, like modular homes, or if the land and construction costs are not in balance, the bank may apply higher rates to offset potential risk.