It seemed a no brainer at the time, as repayments were extremely low and affordable for a fixed 10-year time frame. In the UK, Halifax were the main protagonists of these mortgages, and a mixture of slack lending and possibly mis-selling encouraged large volumes of UK and Irish to buy abroad, some taking equity out of their own home to purchase the dream home in Spain to retire in.
We are now in a period where borrowers who were on the ten-year interest only mortgages have seen low repayments come to an end. Capital repayments have kicked in, and we have seen monthly payments double in some instances.
With increased monthly mortgage payments on top of IBI tax payments and Community Fees, many of these holiday investments start to cost too much and become a big drain on family finances. Furthermore, with a steep decline in capital values since 2008 many of these borrowers find themselves in negative equity. For many, the financial numbers are unsustainable. A solution must be found.
EU Property Solutions can assist borrowers in negative equity who have seen their mortgage repayments spike. In most Spanish cases we can surrender the property to the lender and achieve a complete debt write off. All cases receive a free review by our legal team.
If you want to discuss your interest-only mortgage problem, or are concerned with capital repayments, call EU Property Solutions today on 0330 124 1230 and start solving your problem.