This piece lifted from another forum and written by a Spanish lawyer this week:- 😯 😯 Mortgage reduction.
That is what many banks are offering to clients at present: 30% to 50% reductions on existing mortgages. Many of them, under Government pressure, need to clean their balance sheets before the end of the current year and reduce their real estate stock.
So, for instance: If the unit you were buying off plan had a mortgage of 60k , they are offering to you completion for less than the existing mortgage on the house. This reduction being of even 50% in some cases.
There is no supplied link on which to confirm this.
I do know the government is pressing their banks to clean up their balance sheets, dispose of repossessed properties and implement new capital requirements.
Who knows the flood gates may be about to open and some very cheap deals could be had. Even so it’s a brave investor who will take a punt. I personally am yet to be convinced until signs of economic growth begin.
UK has just announced -0.2% growth and in official recession. Spain -0.4% in recession. Investing in these times is not for the faint hearted.
what is happening is that banks have signed up a to ‘good conduct’ agreement where there are options for a property owner who is unable to meet his mortgage payments to reduce the amount or arrange alternative payment terms. This only applies to mortgages under a certain amount, owners in certain demographics, and on main residences.
So no benefit to the offplan ‘investors’.
(I could be wrong though)
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