Can’t afford mortgage repayments

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This topic contains 5 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 9 months ago.

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  • #51554
    Profile photo of Anonymous
    Anonymous
    Participant

    Help! Does anyone know what we can do if we can’t afford mortgage repayments. We signed power of attorney to our Spanish solicitor who we have since found out is married to the bank manager who provided us with the mortgage. Completion went ahead without us agreeing what the terms of our mortgage would be. We were also mis-informed as to how much of the year we could rent out. We are now in position where we cannot afford to pay the mortgage and would like to give the keys back to the bank. Does anyone have any advice?

    Thanks

  • #60877
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi
    I do not know how it works in Spain, but here in the UK, if you had the keys back that is not the end of things. You still owe whatever you borrowed. Giving the keys back means that they can sell the house maybe, but any losses will still be down to you. Of course It may be that you live in the UK and they would/could not pursue you – who knows. I would get some legal advice in Spain before just walking off.
    Good luck

  • #60879
    Profile photo of Anonymous
    Anonymous
    Participant

    Carry on using it and renting it. they will have to go through the courts anyway to reposess and it can take months or years! You may even manage to sell it before then.

  • #60928
    Profile photo of Anonymous
    Anonymous
    Participant

    Cathy,

    could you not change your mortgage from capital&interest to an interest only mortgage? this would reduce your monthly payments & take the pressure off.

    if you dont mind me asking where did you buy?

  • #60948
    Profile photo of Anonymous
    Anonymous
    Participant

    We would have gone for interest only if we had have been consulted before we completed. Thanks though. Will look into it.thnks everyone for your input.

  • #60953
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi I took my mortgage out interest only with Halifax, they will do 10years interest only. I’m treating the period as breathing space for 10 years to see how renting goes etc.

    Halifax ok to deal with but you have to chase them. Initial work done in UK which helps. Spanish side takes an eternity if you are thinking of doing this start it soon but be very aware of all the fees etc. may have to pay more tax etc.

    You also pay a premium rate for IO i’m paying 3.6ish think you can get repay deals around 3.3ish

    Hope this helps GB

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