Help needed with Spanish mortgage

tori79_2

3 years ago I bought a flat in Spain with my partner. Since then the mortgage seems to have gone up every month and we are currently paying €1200 every month. This is becoming VERY difficult as we both now live in UK and have to send money every month. I was wondering are there any banks in UK that will transfer a spanish mortgage to an English one? I am quite ignorant when it comes to these things and I dont really know where to start looking. I just think things would be easier to control if we had the mortgage here in England. Can anyone help??????Please!!!!!!!!!!!

dwsjarcmcd

It depends on the amount of borrowing you have on your UK property, but I think you need to do a bit of digging about your Spanish mortgage first. Obviously it's not a fixed rate, so it must be some form of variable rate, and actually it may be that it is currency movements that are increasing your monthly payments.

It may be that you will start to see payments fall because the £/euro exchange rate has recovered slightly and because it may be you mortgage is linked to 3-month EURIBOR rate which has fallen quite a lot recently.

You can protect yourself against currency movements by fixing that for up to 2 years via a currency trade (I use HiFx) but be aware the rate will be around 1.05€ to the £ but it could go lower.

You can raise a mortgage against your UK property if you have sufficient equity. I would see a mortgage adviser.

David

dwsjarcmcd

Sorry should have added that a UK based lender will not lend on a Spanish property

David

maninthestreet

Can't you re-mortage the property (with another Spanish bank), on a better deal???