Mortgage rate

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    • October 29, 2009 at 9:24 am #55274
      Anonymous
      Participant

      I have a mortgage with Caixia Galicia and am paying a 4.352 variable interest rate. Are there cheaper and better deals to obtain easily please? The property value is now approx 150,000. was 200,000 2 years ago.

    • October 29, 2009 at 6:23 pm #94862
      Anonymous
      Participant

      Wheter deals around or not. The cost associated with redemption & a fresh mortgage will mostly outweigh any benefit.

      Better to take a loan or mortgage in UK when the market gets better & pay off your mortgage in Spain.

    • October 29, 2009 at 6:35 pm #94863
      Anonymous
      Participant

      I would say don’t bother.

      My mortgage rate has just been re-evaluated and it has come down to around 2.3%. It was re-evaluated last October at the peak of the interest rate cycle and hence I was left with a 6.2% interest rate. I considered re-mortgaging as almost immediately after my re-evaluation to 6.2%, rates came down like a brick.

      I assume this is similar to your mortgage. Ie it is revised annually? In which case just wait a few months and it will drop.

      The cost of remortgaging is going to be over a 1000 Euros. And you are at the mercy of whatever charges the bank/notary feel like applying, which I assume will be a lot more than a few years ago simply because they do not have the business.

      If you were to find a deal 2% better you will only save around 1100 Euros in interest over the first year, but as I say your costs I expect to exceed this. Not to mention all the hassle of dealing with a bank/notary/legal system that see you as a cash cow.

    • October 29, 2009 at 10:27 pm #94866
      Anonymous
      Participant

      Thanks so much for your replies I really appreciate your advice/experience.
      Yes it is reviewed annually so I will wait on that and hope in the meantime the Euro weakens/pound strengthens.
      Thanks again

    • October 30, 2009 at 8:39 am #94867
      marios
      Participant

      Here is a link to mortgage rates

      http://www.irph.es/

    • October 30, 2009 at 8:59 am #94868
      Anonymous
      Participant

      Thank you I will save that link but as it was said the fees are probably going to be too much.

    • October 30, 2009 at 9:05 am #94869
      marios
      Participant

      Yes I posted so you can see what your rate should be when its reviewed as there are several different rates.

    • October 30, 2009 at 9:16 am #94870
      Anonymous
      Participant

      Thank you! Do you know which one I should be referring too or does it vary with each bank?

    • October 30, 2009 at 9:21 am #94871
      marios
      Participant

      You need to look at your paperwork when your mortgage was set up,I am on Euribor rate plus 1.25% with banco halifax

    • October 30, 2009 at 9:27 am #94873
      Anonymous
      Participant

      Thanks very much for your help

    • October 30, 2009 at 2:42 pm #94876
      Anonymous
      Participant

      Do not overlook the fact

      a) That some lenders have a cap on their rates, so rates will not come down as much as one expects.

      b) A large number of Banks are not reducing the monthly payment and such the monthly payment remains the same. However the capital is being reduced.

    • October 30, 2009 at 2:49 pm #94877
      marios
      Participant

      Re the cap were would you find that data,I presume it would be on the original paperwork they gave you about the mortgage,I myself can find no reference to a cap other than it says it will be Euribor plus 1.25%.

    • October 30, 2009 at 3:10 pm #94878
      Anonymous
      Participant

      We started out at 2.5 approx 7 years ago so hopefully there is no cap but thanks.

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