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Interesting, The Daily Mail seems to be reporting on a couple who are (mortgaged up to their necks) being chased by a Spanish bank for UK assets to replay a Spanish loan.
A couple who face losing their house in Britain to a Spanish bank have warned of the dangers of falling behind in mortgage payments on holiday homes abroad.
In an alarming development for the many thousands of Britons who have bought properties in Spain, a bank in Marbella is using EU law to force Carol and Ian Chatterton out of their £300,000 cottage in Wiltshire.
The couple – who are both NHS paramedics and have two daughters aged 12 and 14 – could be forced to sell up to pay back a mortgage on an apartment in Spain, following a hearing due to take place on Tuesday.
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According to another forum discussing this case, this couple originally paid under £90,000 for the house. So before feeling too sorry for them, questions should be asked:
a) how come they racked up a mortgage with the Halifax on this property for £250,000?
b) on top of that mortgage/borrowing, they then take out another mortgage in 2004 of £145,000 with Banco de Sabadell for the Spanish appartment.
As the Halifax comes first with any financial grab (£250,000) on the UK property if it sold, there would only be peanuts left for the Spanish bank. Maybe the banco has realised it’s all not just worth pursuing?
Seems like there’s been some reckless borrowing/spending and misguided assumption of property’s continuing increase in value by this couple, and now they’re crying to the press.
£400,000 of borrowing? Beyond madness.
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@shakeel wrote:
(a) & (b) just does not make sense !!!!!!! It seams at some stage they had two mortgage. How they can have £250K on a property of £90k, even if one adds the compound interest & Bank charges etc.
I imagine they maybe purchased the property for £90.000 and it was a redevelepment. So they must have borrowed the extra money to do the house up.
I don’t think anyone should be to quick to judge though. In the boom, and even now, to find a family home with 3 bedrooms you are lucky to find anything under £250.000, in the south of the uk at least. So their situation mirrors thousands of others. A mortgage for that amount in the south of england for a family home is about standard. We are not in the 1960’s anymore where you can buy a property for £12.000!!!
The only thing they did do which could be seen as reckless was purchase a second home abroad. But again, thousands did the same in the boom. Everyone was encouraged to, so if you were not a savvy investor you got caugt out. As they say, it is the innocent who always get caugt in a crime, the savvy criminals get away with it, not saying investors are criminals.
I do agree in that you cannot just stop paying a mortgage and expect to get away with it. If you take out a mortgage you enter into a contract and it is your duty to pay it all back. So on this one I do agree on. They made their bed, so unfortunately, now they have to lay on it. -
@shakeel wrote:
(a) & (b) just does not make sense !!!!!!! It seams at some stage they had two mortgage. How they can have £250K on a property of £90k, even if one adds the compound interest & Bank charges etc.
More than that.
There is a more than possible prima facie case here for mortgage fraud and other criminal charges in more advanced countries.
Given its Spain, if you’re going to do it anywhere, this is the place.
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@charlie wrote:
Seems like there’s been some reckless borrowing/spending and misguided assumption of property’s continuing increase in value by this couple, and now they’re crying to the press.
and the assumption exchange rates would not change. Nor would interest rates
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@shakeel wrote:
How they can have £250K on a property of £90k
I suspect they kept having it re-valued over the years to enable them to borrow more. Then the bubble went pop.
Apparantly one house similar to theirs in the same road recently sold for £263,000 so their estimation of £300,000 is over-optimistic. Which is something the banco probably found out if indeed they have cooled their heels. £13,000 would hardly be worth the hastle after the Halifax took their bit.@jonas wrote:
I don’t think anyone should be to quick to judge though
With respect jonas, borrowing nearly £400,000 in any circumstances in my view is close to insanity unless you’re way up the salary/other assets scale. And what if one of them had lost their job? Whinge to the press again?
Actually, this story is less to do with the Spanish Costas and more to do with their recklessness. They would be in the same financial boat if they had bought an appartment in Devon instead of Spain. They’ve simply over-extended themselves and are now whingeing. They can’t blame Spain for their predicament. I personally don’t have a problem with the concept of the EEO.
And no, Mrs. Chatterton, you are NOT like those of us caught up in the ‘Costas nightmare’ who paid money for a property that a) was never built, b) is deemed illegal or c) is demolished without compensation. That is the ‘Costas nightmare’, your nightmare was self-made.
Wiltshire MEP Ashley Fox said: ‘To me this is against the laws of natural justice. I shall be writing to the Commission to ask that they investigate.’
Investigate what? You don’t like the EEO then did you lobby against it when it was proposed? All a bit late now to act in a humph.
I’ll tell you what is “against the laws of natural justice”. People being screwed out of their life savings in Spain through no fault of their own. Get your priorities right and spend some time on behalf of these people if you really want to make a name for yourself. -
@charlie wrote:
@shakeel wrote:
How they can have £250K on a property of £90k
I suspect they kept having it re-valued over the years to enable them to borrow more. Then the bubble went pop.
Apparantly one house similar to theirs in the same road recently sold for £263,000 so their estimation of £300,000 is over-optimistic. Which is something the banco probably found out if indeed they have cooled their heels. £13,000 would hardly be worth the hastle after the Halifax took their bit.@jonas wrote:
I don’t think anyone should be to quick to judge though
With respect jonas, borrowing nearly £400,000 in any circumstances in my view is close to insanity unless you’re way up the salary/other assets scale. And what if one of them had lost their job? Whinge to the press again?
Actually, this story is less to do with the Spanish Costas and more to do with their recklessness. They would be in the same financial boat if they had bought an appartment in Devon instead of Spain. They’ve simply over-extended themselves and are now whingeing. They can’t blame Spain for their predicament. I personally don’t have a problem with the concept of the EEO.
And no, Mrs. Chatterton, you are NOT like those of us caught up in the ‘Costas nightmare’ who paid money for a property that a) was never built, b) is deemed illegal or c) is demolished without compensation. That is the ‘Costas nightmare’, your nightmare was self-made.
Wiltshire MEP Ashley Fox said: ‘To me this is against the laws of natural justice. I shall be writing to the Commission to ask that they investigate.’
Investigate what? You don’t like the EEO then did you lobby against it when it was proposed? All a bit late now to act in a humph.
I’ll tell you what is “against the laws of natural justice”. People being screwed out of their life savings in Spain through no fault of their own. Get your priorities right and spend some time on behalf of these people if you really want to make a name for yourself.Yes, exactly.
If they were correctly investigated and if charges were brought (which is highly likely in a proper country, but not Spain) against them and those who colluded, this would be a major turning point.
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@charlie wrote:
@jonas wrote:
I don’t think anyone should be to quick to judge though
With respect jonas, borrowing nearly £400,000 in any circumstances in my view is close to insanity unless you’re way up the salary/other assets scale. And what if one of them had lost their job? Whinge to the press again?
Do you think that investors pay cash for their investments?? ..And they borrow in the millions.
Every one borrows different amuonts as everyone has different circumstances. You can’t say it is insane to borrow that amount of money. You don’t know what their earnings were at the time.
You might as well say no one should ever borrow as they could lose their job tomorrow…
However if you borrow and you can’t pay, that is your problem.
There are very few people who do not borrow to purchase a property. Maybe in the boom they were high earners and could afford the mortgage offered to them. The recession has seen a lot of high earners now become low earners through no fault of their own. I would not say they were insane at all, their circumstances may have been completely different to now. -
Do you think that investors pay cash for their investments??
Doubt it. But I do know it used to be Postal Orders in the old days if that’s any help.
And they borrow in the millions.
Well bully for them. But what has that got to do with this couple? Think you’re slightly veering off the point here somewhat.You can’t say it is insane to borrow that amount of money.
Yes I can ‘cos I just did. It’s my opinion.
I’ll quote what you said to someone on another thread today: “I have an opinion and will stick by it and am certainly going to post it if I wish…..”.
Does that go just for you then, laddy?
You don’t know what their earnings were at the time.
No, but you don’t have to be a rocket scientist to Google the NHS website and learn that the NHS paramedics salary scale is £21,176 – £27,534.
I assume at the time of purchasing their house they weren’t MP’s earning a good whack plus expenses . But I could be wrong.
You might as well say no one should ever borrow as they could lose their job tomorrow…
Suggest you re-read what I said and try to hold on to the context in which it was said re. the press.However if you borrow and you can’t pay, that is your problem.
Finally we’re singing from the same hymn sheet.There are very few people who do not borrow to purchase a property. Maybe in the boom they were high earners and could afford the mortgage offered to them. The recession has seen a lot of high earners now become low earners through no fault of their own. I would not say they were insane at all, their circumstances may have been completely different to now.
Oh dear………
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@charlie wrote:
Do you think that investors pay cash for their investments??
Doubt it. But I do know it used to be Postal Orders in the old days if that’s any help.
And they borrow in the millions.
Well bully for them. But what has that got to do with this couple? Think you’re slightly veering off the point here somewhat.You can’t say it is insane to borrow that amount of money.
Yes I can ‘cos I just did. It’s my opinion.
I’ll quote what you said to someone on another thread today: “I have an opinion and will stick by it and am certainly going to post it if I wish…..”.
Does that go just for you then, laddy?
You don’t know what their earnings were at the time.
No, but you don’t have to be a rocket scientist to Google the NHS website and learn that the NHS paramedics salary scale is £21,176 – £27,534.
I assume at the time of purchasing their house they weren’t MP’s earning a good whack plus expenses . But I could be wrong.
You might as well say no one should ever borrow as they could lose their job tomorrow…
Suggest you re-read what I said and try to hold on to the context in which it was said re. the press.However if you borrow and you can’t pay, that is your problem.
Finally we’re singing from the same hymn sheet.There are very few people who do not borrow to purchase a property. Maybe in the boom they were high earners and could afford the mortgage offered to them. The recession has seen a lot of high earners now become low earners through no fault of their own. I would not say they were insane at all, their circumstances may have been completely different to now.
Oh dear………
Oh dear….did I upset the “old timers gang” with my other post 🙄
Welcome to the year 2011!!!!
Postal orders! What are they?!! 😆
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It seems they didn’t just “find payments difficult” re. their Spanish appartment, they actually started missing payments last year altogether.
When they offered their appartment back to the bank they didn’t want it – it seems not even the banks think an appartment in Duquesa is a good ‘asset’ to have at the moment, at any price….
Bottom line to this story, miss payments on a mortgage whereever it may be, fail in your responsibility to honour your contractual agreement, you get snookered. They should have read the small print.Jonas, I only get upset when I care. Sorry to disappoint (as that seems to be your main motivation for being on this forum) but that doesn’t include someone who is unable to put forward a constructive/measured debate. 🙂
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@charlie wrote:
When they offered their appartment back to the bank they didn’t want it – it seems not even the banks think an appartment in Duquesa is a good ‘asset’ to have at the moment, at any price….
Bottom line to this story, miss payments on a mortgage whereever it may be, fail in your responsibility to honour your contractual agreement, you get snookered. They should have read the small print.they borrowed 145.000 sterling to buy the apartment. exchange rates in 2004 would have give 1.45€ to the pound. So a 2 bed, 2 bath standard property in Duquesa with a mortgage of over 200.000€ on it…. not suprised the bank did not want it!
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