The Spanish mortgage market has seen a shift toward intermediation and toward more complex products over the last few years. Given the current liquidity environment, one might think that it will revert back to traditional products sold through branches but it’s not the case.
In fact, what we see more and more are new and more complex products, introduced by lenders in partnership with large brokers as in this example (and there are many more).
This tells me two things:
- Like in the US since August, lenders understand the need to manage the current borrower’s base in the long term and that closing the door to consumers in difficulty will only increase default and reduce the value of real estate (thus of the lender’s collateral)
- The “consulting” part of the sales process becomes increasingly valuable to consumers because choosing the right product is no longer about the lowest rate or monthly payment.
The market is getting "smarter / more mature” but progress is still needed. If you read the article, did you pick up on how the product is presented as a solution against the risk of a rising Euribor when, in reality, even if Euribor stayed flat, the product requires increasing payments over time?
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