March 27, 2008 at 2:15 pm #53804
During the past 3-4 weeks I have been inundated with mortgage applications from people who are not buying or selling a property through me.
Most are re-mortgages, such as multi-currency or intrest only. It is difficult to identify the reason for this as most applicants generally don´t tell the whole truth behind the applications.
I suspect it has something to do with people wanting lower repayments or equity release to help with repayments (possibly to save them drawing UK funds over with such a poor exchange rate).
Has any other agent or finance company viewing this forum noticed a similar trend. I would be interested to know why this is happening at this time.
Incidentally, I have used several different banks to place this mortgage business and found no problems obtaining funds, provided, the applicants show regular income.
March 27, 2008 at 4:53 pm #80278
People took variable mortgages when the Euro interest rate were low. Now their monthly payment is much higher then at the beggining.
they cannot afford the new rate and try to get a (much) lower one. If their place is in negativity equity situation, they won’t be able to remortgage.
It is also that the mortgage brokers have been in the press telling people to get their remortgage applications in 6 months in advance.
March 27, 2008 at 7:17 pm #80279
Hi, I am looking for a mortgage at the moment, maybe some people are in the same position as me. I have a GBP mortgage on my UK property I used this loan to buy Euros and pay for my Spanish place. With the big move up in Euro, I am trying to switch into Euros. I want a Euro loan which I will then sell and buy GBP to repay my mortgage in UK. Maybe this could be part of the answer you are looking for.
March 27, 2008 at 8:02 pm #80280
Interest only mortgages have lower loan to value. The margin charged is higher than variable mortgages. There is than the cost such as opening fee, registration, notary etc.
One, really has to see the benefit of a re mortgage. If people are remortgaging like “aidan” says than it make sense to take advantage of the strength of the €, The situation is opposite of when £=€1.65.
March 28, 2008 at 12:38 pm #80295
could someone please let me know how difficult and how much costs are involved to remortgage in Spain? Are there many interest only mortgages available? Also, what long term fix rates can you get as if the Euribor rate does come down then maybe I will try and lock into a lower rate for longer term.
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