Re: Re: How is Spain going to deal with Negative Equity?

#102831
Anonymous
Participant

@katy wrote:

Yes we had a mortgage when we first got married. We also realised that property and mortgage rates can go up and didn’t borrow to the max.

These are average rates for mortgages with Building
Societies. Comparable figures prior to 1984 are not available….

Year Average Rate2 Basic Rate3
1984 12.19 11.88
1985 13.01 12.75
1986 12.32 12.30
1987 10.34 10.30
1988 12.75 12.77
1989 14.44 14.42
1990 14.34 14.48
1991 11.39 11.52
1992 8.98 8.98
1993 7.94 7.99
1994 7.84 8.14
1995 7.48 7.98
1996 6.51 7.00
1997 7.58 8.16
1998 7.29 7.75
1999 6.49 6.88
2000 6.65 7.31
2001 5.17 5.34

1 The average rates are based on information provided by Building
Societies. The figures reflect rates at the end of the year.

Really people with mortgages have never had it so good 😛

So sellers in spain should be grateful to be in negative equity and think themselves lucky that the interest rates are “temporarily low”?
aren’t they the lucky ones, so what happens to these people when the rates go up to those previous levels???

You appear to have not read the whole post, or chosen to ignore it

As I said before people from priveleged backgrounds living in their own “bubble” need to come back down to earth, and maybe spend a few years living in the real world, then your views might change a bit and you might agree what has happened to these people is not “tough titty” as someone else wrote in another post, but something which needs addressing in the same way Ireland and America are addressing it.