Mortgage rate

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This topic contains 12 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 7 years, 1 month ago.

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  • #55274
    Profile photo of Anonymous
    Anonymous
    Participant

    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.

  • #94862
    Profile photo of Anonymous
    Anonymous
    Participant

    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.

  • #94863
    Profile photo of Anonymous
    Anonymous
    Participant

    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.

  • #94866
    Profile photo of Anonymous
    Anonymous
    Participant

    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.
    Thanks again

  • #94867
    Profile photo of marios
    marios
    Participant

    Here is a link to mortgage rates

    http://www.irph.es/

  • #94868
    Profile photo of Anonymous
    Anonymous
    Participant

    Thank you I will save that link but as it was said the fees are probably going to be too much.

  • #94869
    Profile photo of marios
    marios
    Participant

    Yes I posted so you can see what your rate should be when its reviewed as there are several different rates.

  • #94870
    Profile photo of Anonymous
    Anonymous
    Participant

    Thank you! Do you know which one I should be referring too or does it vary with each bank?

  • #94871
    Profile photo of marios
    marios
    Participant

    You need to look at your paperwork when your mortgage was set up,I am on Euribor rate plus 1.25% with banco halifax

  • #94873
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks very much for your help

  • #94876
    Profile photo of Anonymous
    Anonymous
    Participant

    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.

  • #94877
    Profile photo of marios
    marios
    Participant

    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%.

  • #94878
    Profile photo of Anonymous
    Anonymous
    Participant

    We started out at 2.5 approx 7 years ago so hopefully there is no cap but thanks.

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