May 6, 2008 at 4:02 pm #53927
During the past week, I have had several meetings with bank managers from – Solbank, BBVA, Santander, Bankinter and also with Cajamar and Caja Murcia.
The point of my meetings was to do with a business idea I have had but is irrelevent to my thread.
During these meetings, I have asked the managers about foreclosures and repossessions, in all cases their response has been very welcomed.
Apparently most Spanish banks are holding a series of meetings with a view to avoiding repossessions. They are exploring ways to reschedule repayments for defaulting customers without incurring any costs to the borrower which would usually mean re-mortgaging to extend the term of the loan with a hefty 3-4% set up costs.
They are hopeful the new proceedures will result in far less repossessions and consequently less property to despose of.
Whilst we all know UK banks are familiar with this solution, Spanish banks are only just seeing the benefits to themselves and their customers.
I did not get a clear answer as to how they will re-schedule repayments without a notary being involved but I hope for many peoples sake they make it succeed.
May 6, 2008 at 4:18 pm #82179
My Wife works in the mortgage arrears department at Barclays. Recently there have been some high profile visits from Barclays Spain management looking at how to integrate the mortgage collections system in the UK into the systems in Spain.
There could be a light at the end of the tunnel for some.
May 6, 2008 at 4:27 pm #82180
Marfish, I would have thought Barclays España would have the same problems as other banks in Spain. The main problem being any changes to a mortgage repayment contract needs to be re-notarised and stamp duty paid.
Because the notary system is not used in the UK it´s fairly easy for the UK banks to reschedule loan repayment compared to the beuracracy in Spain.
But as you say, light at the end of the tunnel at least
May 6, 2008 at 4:52 pm #82182
The Notary system is such a deterrent in doing/raising finance all over Europe. Surely the Bank is lending to a person they see fit and as such there is a contract between the two parties concerned.
To pay Taxes/stamp duty on raising finance is a tax on enterprise.
May 6, 2008 at 6:07 pm #82184
This isn’t down to the banks…it was an element of the government’s economic “boost” announced recently…the banks have no choice!
May 9, 2008 at 2:17 pm #82322
Hi Hillbilly and Peter,
Thanks for the heads up on this! I was reading yesterday on the BBC about the (UK) Government’s plans to help homeowners with their mortgage repayments – http://news.bbc.co.uk/1/hi/business/7391772.stm and wondered if your posting is the Spanish Governments/Banks equivalent to the same thing for homeowners – spanish and foriegn. If so, how will it work exactly (my spanish is not as good as it used to be!)? 🙁
Just to say, I went to see my bank manager about extending the life of the mortgage to reduce the repayment fees or put a 3 month holiday on the repayments, and she said that she would look into my file and come back to me. After several weeks I am still waiting!!! The bank is Caixa Galicia.
May 9, 2008 at 3:09 pm #82327
The “deal” in Spain is that, starting in May and for 2 years thereafter, homeowners with mortgages can extend the term of their mortgage in order to reduce their monthly payments and this can be done without incurring any costs whatsoever whether from the lending institution, notary or registrar. This is applicable for your primary residence only.
So, as far as I can tell, as long as your only home is in Spain i.e. you’re permanently resident here, and it’s mortgaged, nationality doesn’t come into it.
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