Re mortgage - in UK or Spain?

Littleprivate
Littleprivate Posts: 1 Newbie
in Cutting tax
Hi, Im new to this site so please stay with me...
Have two uk properties each with uk mortgages on them. Have Spanish property with no mortgage on ...I understand Euro mortgages can be cheaper, my query is:

Can I re mortgage by consolidating my existing 2 uk mortgages to 1 spanish mortgage on the mortgage free spanish property?

Any suggestions any one ...Martin ???

Thank you
:cool:

Comments

  • silvercar
    silvercar Posts: 46,955 Ambassador
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    I was told on this board yesterday that a mortgage doesn't have to secured on the same property that your recouping the rent on, in order to get tax relief on the interest payments.

    See here:

    http://forums.moneysavingexpert.com/showthread.html?t=211095
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  • cash99
    cash99 Posts: 269 Forumite
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    Tax relief will not be a problem, but have you considered what happens it the Euro appreciates against the £. The 1-2% you save in interest is wiped out in very short order.

    Unless you are comfortable with the risks involved with currency speculation then it is only wise to have foreign currency denominated mortgages if you have a foreign currency income to pay them with.
    if i had known then what i know now
  • Cook_County
    Cook_County Posts: 3,085 Forumite
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    You'll also need to consider the implications for Spanish wealth taxes and forced heirship rules...my message is for you to focus on both sets of rules in deciding.
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
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    Don't know abot mortgages as I haven't got one...but I do know that selling a Spanishproprty generates 20% tax for residents, 40% non residents... Don't kniw whether it's the same if youhahve a motgae, but worth looking into.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
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