Just thought I would start a thread on this as a lot of people who are struggling to repay their mortgage in spain may not know that they can ask the bank in spain if they can pay the interest only for a period of time. (this is normally for a period of 2 years)
This is normally written on your mortgage agreement, so get someone to check this out for you.
Quite a few people in Spain that I know of personally have had their 2 year interest only repayments extended by another 2 years, so a total of 4 years paying interest only and stalling their repayments on their mortgages. So I think the banks are helping people to save their homes already!, hich is great news for those struggling to keep up the repayments.
So to any distressed sellers reading this, go to your banks and ask them to sort out a “carencia” this means that you only pay the interest you owe and the stop the repayments for you. Normally this is only for a total of 2 years, but once the two years is up, if you have been paying that ok, they will extend it for you. It is at a cost, but it helps so you don’t have to sell your property at a loss and you can therefore keep hold of it for at least 4 years so they don’t have to repossess you.
The bank manager has informed me, today funnily enough, that they are looking into doing this to avoid a reposession as that is the last thing they want to do!
So great news for all those trying to sell because they can’t affor to pay! 😀
Everything you need to know about property in Spain
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