- October 29, 2009 at 9:24 am #55274
I have a mortgage with Caixia Galicia and am paying a 4.352 variable interest rate. Are there cheaper and better deals to obtain easily please? The property value is now approx 150,000. was 200,000 2 years ago.
- October 29, 2009 at 6:23 pm #94862
Wheter deals around or not. The cost associated with redemption & a fresh mortgage will mostly outweigh any benefit.
Better to take a loan or mortgage in UK when the market gets better & pay off your mortgage in Spain.
- October 29, 2009 at 6:35 pm #94863
I would say don’t bother.
My mortgage rate has just been re-evaluated and it has come down to around 2.3%. It was re-evaluated last October at the peak of the interest rate cycle and hence I was left with a 6.2% interest rate. I considered re-mortgaging as almost immediately after my re-evaluation to 6.2%, rates came down like a brick.
I assume this is similar to your mortgage. Ie it is revised annually? In which case just wait a few months and it will drop.
The cost of remortgaging is going to be over a 1000 Euros. And you are at the mercy of whatever charges the bank/notary feel like applying, which I assume will be a lot more than a few years ago simply because they do not have the business.
If you were to find a deal 2% better you will only save around 1100 Euros in interest over the first year, but as I say your costs I expect to exceed this. Not to mention all the hassle of dealing with a bank/notary/legal system that see you as a cash cow.
- October 29, 2009 at 10:27 pm #94866
Thanks so much for your replies I really appreciate your advice/experience.
Yes it is reviewed annually so I will wait on that and hope in the meantime the Euro weakens/pound strengthens.
- October 30, 2009 at 8:39 am #94867
- October 30, 2009 at 8:59 am #94868
Thank you I will save that link but as it was said the fees are probably going to be too much.
- October 30, 2009 at 9:05 am #94869
Yes I posted so you can see what your rate should be when its reviewed as there are several different rates.
- October 30, 2009 at 9:16 am #94870
Thank you! Do you know which one I should be referring too or does it vary with each bank?
- October 30, 2009 at 9:21 am #94871
You need to look at your paperwork when your mortgage was set up,I am on Euribor rate plus 1.25% with banco halifax
- October 30, 2009 at 9:27 am #94873
Thanks very much for your help
- October 30, 2009 at 2:42 pm #94876
Do not overlook the fact
a) That some lenders have a cap on their rates, so rates will not come down as much as one expects.
b) A large number of Banks are not reducing the monthly payment and such the monthly payment remains the same. However the capital is being reduced.
- October 30, 2009 at 2:49 pm #94877
Re the cap were would you find that data,I presume it would be on the original paperwork they gave you about the mortgage,I myself can find no reference to a cap other than it says it will be Euribor plus 1.25%.
- October 30, 2009 at 3:10 pm #94878
We started out at 2.5 approx 7 years ago so hopefully there is no cap but thanks.
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