- February 9, 2009 at 8:19 pm #54736
Hi – hope someone has dealt with this query before.
We have an annual fixed rate euribor mortgage. For the first 2 years it was interest only and has now gone to repayment – coupled with this the hike in the euribor when it was reassessed last July meant that the payments had a double rise – which whilst it is still manageable for us, we are worried that the £ could weaken even more. The reassessment is due in July and hopefully the euribor will still be low.
I am fairly sure that the Bank have to reduce it which should bring the payment level lower, but has anyone had any experience of switching mortgage? I gather that it is really expensive to do this (unlike the UK) – I just wish we had taken the UK mortgage at the time! The benefit of hindsight!
Any words of wisdom would be appreciated.
- February 9, 2009 at 9:46 pm #90140
Hi, remortgage – assuming any bank will do this with regards to your status as they are so strict now, will cost between 5 and 6% of the loan.
- February 20, 2009 at 3:42 pm #90298
I was having a similar problem with my mortgage payments increasing 30% in 4 years and choking me. Back in July I went to my bank to ask some relief and they were VERY uncooperative. I asked for a conversion to interest only since there really was no reason for me to be paying capital payments after having done so for 4+ years. Even in this property downturn the house was still valued conservatively (by the bank itself) 150k more than I had paid. No go…they offered a reduction but with ridiculous conditions (I had to put 30,000 euros into a blocked account!!!) Well I kept at them…month after month. Finally I spoke to my tax assesor who knows the bank manager and he went to bat for me. Well…it took 7 months but last week they changed the conditions, extended the mortgage until I am 117 years old ( slight exaggeration!) and I am now paying 545 euros less! Yippee!
My recommendation to you is to speak to your bank. Be honest. Tell them it hurts and you don’t want to walk away from your house. They don’t want your house believe me!! Then be persistent. Squeaky wheel gets the grease.
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