WARNING! Mortgage brokers need the necessary qualifications to provide financial advice on mortgages. Always make sure your mortgage broker is fully regulated in Spain!
Back in June 2019, new Spanish mortgage regulations, were implemented in Spain, in line with the EU mortgage directive. This brought with it important changes relating to mortgage brokers, who are currently operating in Spain.
From June 2019, any advice given on mortgages must now be obtained from informed, certified and regulated sources. In other words, when you are offered a broker service, whether from your estate agent or direct from the broker, the first thing you must request is their qualifications, certificates and the regulating body that authorises the intermediary. This is good news for all parties, because clients now know that they are putting their trust in a regulated source, and the banks will only work with professional and certified third parties! That’s why Mortgage Matters Spain is proud to be fully regulated in Spain and also qualified to UK standards (CeMAP). Qualifications achieved coupled with almost 20 years in international private banking puts us in the privileged position of being able to offer you a unique and specialised source of knowledge and advice.
All financial intermediaries and lenders, who engage in activities subject to regulation in the LCCI are required to obtain the necessary credentials (ICI = Intermediario de Credito Inmobiliario = Mortgage Broker).
To discuss mortgage options with clients, you must now have a Mortgage Broker Qualification known to become an ICI and also be fully registered with the Spanish regulator – the Bank of Spain. The qualification requires the broker to be fluent in Spanish, which makes sense because being a mortgage broker in Spain involves the full explanation of the mortgage contract which the client, who often does not speak Spanish needs to understand in full. After all, you are signing a credit agreement to which is legally binding, with obligations and clauses, just as you would when signing a mortgage agreement back in your home country.
The fundamental objective is to certify that qualified mortgage broker have adequate and up-to-date knowledge, concerning the real estate market and the mortgage financing process. As well as be able to face the current regulatory demands in the field of information activity on the services provided by entities that grant mortgage loans.
It’s very good news that mortgage brokering has recently been more stringently regulated in Europe, because it offers an opportunity for the whole industry to get things back on track. The benefits for the client who now receive harmonized information all over Europe, thus enabling enhanced transparency and security for the client, when taking out a mortgage loan. The law imposes transparency and behaviour obligations on credit lenders, banks and brokers, especially regarding the pre-contractual phase and information, as well as execution and resolution of contracts. A regime of sanctions is included for breaches of obligations contained in The Law.
This professional certification evaluates all the banking and financial knowledge and competencies necessary to inform and commercialize real estate loans. As well as, all other services and accessory products to clients or potential clients, under the scope of the mortgage law LCCI.
So the message is clear – make sure you’re dealing with a fully qualified Spanish ICI when requesting advice on Spanish mortgages. Don’t be afraid to ask to see their certificate on your very first point of contact with any broker, regardless of your relationship or if you have used them previously, it’s for your own protection.
Alison from Mortgage Matters Spain is a fully qualified UK Mortgage Advisor (CeMAP) and she also qualified as a Certified Financial Advisor (CeFA) from The London Institute of Banking & Finance. Along with the new Spanish ICI certification, this means that she is in the unique position of being a dual qualified Mortgage Advisor to both UK and Spanish standards. Alison is also fluent in English, Spanish and French, giving you even more confidence that things will not get lost in translation!
If you would like to discuss mortgages in Spain, why not contact Alison by email or call the office on +34 951 120 072.