I read a post on another forum about a guy, living in the UK who was out of work and could no longer afford to pay his Spanish mortgage. He asked for advice. Somebody replied who works for a Spanish bank. He wrote:
If nothing works then do a “dacion en pago” which means that you are giving up the property because you realistically cannot afford it. To do so you will need to proof them that you are out of work and you’ve got no money left on the bank account for the mortgage.
Before you do anything really, think twice because you WILL loose all the money you have already invested in your dream and that is a shame. If you think there is a small possibility to make it work do it. Do not just give up because you will never, ever get a mortgage in Spain, ever, ……..
This bit was alarming though.
not only that. Spanish banks now have access to Experian and you may have trouble in the UK
Does this mean a Spanish debt would/could jeopardise a UK credit rating?
Yes, we are in a single market.
I’ve heard of people being pursued in Thailand for UK credit card debts. A Spanish bank would have no problem operating in the UK.