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Make sure you only take out a mortgage if you’re sure you can pay it back
Getting money back from immigrants can be difficult, especially if, as many homeless Ecuadoreans and a lot of British buyers on the “costas” have done, they just run home. However, Spanish banks have other ways to recover money. British law firms are, for example, being hired to go after those owing money on holiday homes. With Ecuadoreans, though, they simply package up the loans and sell them on to others.
One eager buyer has been Banco Pichincha, an Ecuadorean bank that has set up in Spain. “The bank is asking people to put up properties in Ecuador as collateral,” Quinatoa explained. “That means if you can’t pay here, they can take your property there.”