Spanish Mortgage

Britabroad_3

I purchased a spanish property two years ago with a spanish mortgage when the exchange rate was really good and money was plentiful over here. I've run into difficulties due to working hours being cut and of course the exchange rate so dire. I have explained my circumstances to the spanish bank who have offered interest only payments until things improve for me but I'm a bit wary that after the interest only period is up they will sting me for even higher payments than I am on now. Anyone else had experience of this in Spain?

antenna

This is no problemo.............I have, for the first 3 years an interest only mortgage with Halifax Espana...........you will not pay anything off the loan during the interest only period,then you will start paying interest plus a little off the loan amount. There will be no extra payment or charge levied if you maintain the agreed repayment. When my 3 years are up i will start paying interest plus a small capital repayment.....................

Britabroad_3

Thanks for the info.

I have told the spanish bank that there is a possibility of being made redundant if things don't improve over here at which time I will not be able to afford to pay even interest. I did ask if they would consider at this stage the Dacion en Pago that some of the spanish banks are operating which is basically handing the keys over and getting a deed signed by them in front of a notary to say that they will not chase you back in the UK for monies owed. They have not said yes and they have not said no. Do you know anyone who has experience of this process?

antenna

I have no experience of this "Dacion en Pago"..........if you owe in mortgage more that the property is now worth,and the mortgage provider has to sell the property at a loss,then,i find it hard to believe they will stand the loss themselves...........but we are in strange times and perhaps they would prefer a small loss today rather than a larger loss in the future