Spanish mortgage

jan1234_2

We have a house in UK worth £100,000 which we rent, so gives us an income.

We bought an apartment in Spain and took a mortgage out for equivalent of £100,000 (160,000 euro)

Therefore the house really secured the mortgage....

But now the house is worth £85,000. The £100,000 spanish mortgage, which was at 2.9% interest rate is now 6.487%, so mortgage payment has gone up.

AND the exchange rate has gone from 1.6 to near 1.10, so to pay off the spanish mortgage now would cost aprox £145,000

ANYONE GOT ANY SUGGESTIONS??

maninthestreet

So the mortgage in question is secured on which property???

jan1234_2

It was took out in euro's against the spanish property.....

happybroker

What's the property in spain worth? Is it your main residence?

jan1234_2

it is worth approx 220,000 euros, our main house, in which we live, is in uk, but cant touch that mortgage as it is a really low rate and is really separate from other 2

Bloo_Loo

I suggest you revisit the valuation of your Spanish property.

you are unclear. post 1 you rent out the UK house, post 5 your main living place is also UK.

Do you have 3 houses?

maninthestreet

Jan1234,

Please list every property you own, whether it's in the UK, Spain or some other country, it's purchase price, it's current value, any outstanding mortage and the number of years left on the mortgage.

jan1234_2

Yes, we have 3 houses, sorry to be unclear

UK worth £250,000, owe on mortgage £82,000, 12 years left. cant change that mortgage really low rate.

UK worth £ 85,000 no mortgage, receive rental of £350pm

Spain worth £191,000 owe on mortgage £127,000, 21 years left (6.487% at moment)

It is the exchange rate which is the killer though??

maninthestreet

Sell the Spanish property. Or sell the UK rental property, and use it to reduce the mortgage on the Spanish property.

Ewarwoowar2

Wasn't life much more simple when people just bought a house to live in and went on holiday?

You've got a house and an apartment you can sell. Even if you sold them both you'd still have a house to live in.

Why don't you simplify your life and sell one of them? Holiday homes and amature landlords are both headaches you can do without IMO.

Although I'd get an up to date vaulation before making any decisions. Apartments in Spain have been badly hit by the property crash.

PasturesNew

Oh, THREE houses and equity.

I'm confused as to what the problem is.