Re-mortgaging

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This topic contains 1 reply, has 2 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 1 month ago.

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  • #54427
    Profile photo of Anonymous
    Anonymous
    Participant

    Looking for some expert advise from the forum…

    My Spanish Euro mortgage is now 6.21% which is more expensive that a UK based sterling equivalent (I think). It will be at this level for the following 12 months regardless of what happens to the base rate.

    In the near future I am looking to re-mortgage with a UK based international bank, but have to educate myself first about the re-mortgage procedure.

    My question is if I were simply to pay off the outstanding mortgage, apart from the cancellation fee is there generally any other fees involved, for example a notary fee, etc. Obviously this will be the baseline from which I can compare the re-mortgage costs which I realise will involve other expenses.

    Thanks

  • #87170
    Profile photo of Anonymous
    Anonymous
    Participant

    “My Spanish Euro mortgage is now 6.21% which is more expensive that a UK based sterling equivalent (I think). It will be at this level for the following 12 months regardless of what happens to the base rate.”

    Until you don’t have a fixed rate. Your mortgage rate is tied to Euro bor three, six months. I don’t know when you took your mortgage out. However as in the recent past the Eurobor went up so did your mortgage your 6.21% looks like to be a result of this. Eurobor should be on the way down with the easing of money market & the lowering of interest rates by the ECB.

    “In the near future I am looking to re-mortgage with a UK based international bank,”

    Most banks are international these days, in one form or another. UK, banks will not lend you on a property outside of UK, for collateral reasons, even though we are in EU, this kind of lending will be considered as cross border. If you can find a lender and this is a big if. they will lend you in €, so the rates will be very similar.

    “but have to educate myself first about the re-mortgage procedure. “

    forum is a good start.

    “My question is if I were simply to pay off the outstanding mortgage, apart from the cancellation fee is there generally any other fees involved, for example a notary fee, etc. Obviously this will be the baseline from which I can compare the re-mortgage costs which I realise will involve other expenses.”

    The cost that you mention are substantial & add few thousands if it is a fixed mortgage. Raising funds in £ at present is not a viable situation for reasons that UK Banks are not lending and will give any reason to turn you down. Not to mention the exchange rate is not very favourable.

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