Spanish mortgage

panoramica1

We have a property in Spain and a mortgage with the Spanish bank - Bankia. We are concerned that the bank has financial problems highlighted by the recent bailout.Should the bank close how would this affect the ownership of our property and would anyone advise moving the mortgage to a UK bank?

System

I am not sure that you will find any lender willing to provide a mortgage on a Spanish property at the moment

holly_hobby

The lender (or their administrators in the event of collapse) will sell their mge book (as an asset of the bank) to a 3rd party.

So your liability will just be transferred to another financial group/provider (which could include the gov if a buyer isn't found) - in essence your mge debt will not be written off following their failure, if that was your concern.

Hope this helps

Holly

maninthestreet

It's extremnely unlikely that any UK bank will lend money secured on a foreign property. Maybe things work differently than in the UK, but property owner's do not have to worry about losing their property if their mortgage lender goes bust.

Thrugelmir

panoramica1 wrote: »

Should the bank close

It won't.

However your mortgage might increase in cost.