Mortgage Abroad

Blue3

Hi Can anyone help?
I have a couple of queries actually...
1. I am hoping to buy a place in Spain within the next 2 years - I am aware that I need at least 20% deposit . I have been told that the interest rate in Spain is 3.5% and is more stabe than the UK - Do you agree?
and b) One of the reasons I was going to get a Spanish mortgage was because about 14 years ago I was voluntarily reposessed - I gave my keys into the Building Society and they resold my house. They were aware of where I lived but have never approached me for any money (think I owed about £5,000). Am I now safe? AND If I were to apply for a mortgage here in the UK would I have to mention this? (I have since remarried and I did not have CCJ).
Thanks.

PS MARTIN - Can you do some articles about buying abroad?????:money:

Keep on doing what you're doing and you'll keep on getting what you've got!!

Ian_W

Hi Blue3,
1. No, I don't believe you can assume the €uro interest rates will be more stable than the UKs. They might be, but then again they might not. Spain isn't the issue, rates are set by the European Central Bank.
A more fundimental question is what currency will you be earning the money to make the repayments in. If you're letting the property and being paid over there or if you intend to move there and you will be paid in € then borrow in that currency. If you're going to be earning sterling then having a € mortgage will cost for converting and also carries risk regarding the exchange rate between £ and €s.
There are now plenty of UK lenders who will these days lend on Spanish property. Another way is to remortgage a UK property to release equity but I take it from part b] of your question you don't own a UK home?
b] I believe they can only chase you for the debt for 12 years but I'm not sure on that. You should check your credit rating to see if there are any adverse entries, if not you may be worrying for nothing. You can do this online with equifax or experian. Martins done some articles on the site about credit ratings which it would be worth you reading.

HTH.

Blue3

Thanks Ian, Very helpful.
I will actually be working here in UK and renting out for a few years until I can afford to move out there permanently. (I am 43). I do have a UK house but it is in my husband's name (He is 56) so I am hoping to move out as soon as he retires and maybe work abroad. Course then I will be needing advice about a pension!!!!!!

Ian_W

Blue3,
TBH spanish mortgages or UK loans secured on a spanish property incur a lot of legal fees. They normally say allow 8-10% above the price you pay for fees and taxes when buying in Spain, if you have a mortgage budget for 15% more. It's better if your OH house has the equity to consider a remortgage in the UK as the first option.
If you click on my username and then visit my homepage you'll see I have owned there and whilst we sold last year I'm still letting it for the people we sold to. If you have any specific queries PM me and I'll try to assist.

Blue3

Hi Ian, I saw your homepage - couldn't message you though because it says that you do not wish to receive messages!!

Ian_W

Hi Blue3, Sorry about that, they have been working a lot on the site lately. If you still can't PM me go on the homepage and use one of the links to email me.

SAZZLEEVANS

Take a look at the forum on https://www.eyeonislacanela.com