Reply To: Walk Away



@mark wrote:

If you walk away from your mortgage, there is an increasing risk that Spanish banks will pursue you in the UK for the money you owe them if they have to sell the property at a loss. If they were to do so, it would affect your credit record in the UK. It’s not something I have looked into in any detail, but what with European integration people need to consider this. I’ll be looking at it a lot closer now, but if anyone has any reliable info on this subject, I think we would all be interested.


Correct. Spanish Banks can pursue your debts in the UK if you default on your mortage payments.

On signing a Spanish mortgage you have unlimited responsibility both current and future. In plain English, you don’t only respond with the collateral (the Spanish asset= house) you also respond with your UK assets.

So if you run into negative equity and you default the Sapanish bank may choose to pursue your UK/Irish assets, even freeze part of your salary over there. Your credit history will take a major blow, not only in Spain also in the UK.

As Claire has rightly pointed out, until you complete (off-plan) the property belongs to the developer (on which a bank will have set a charge to finance the whole development). So if you pull out in an off-plan you lose your deposit and a large amount of your stage payments. No one will pursue your assets in the UK, this is something different because you have not completed and signed a mortage deed.