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Mortgage Problems Abroad

If you've received a letter or legal notice from a foreign bank or a UK based debt collection agency years after buying a property abroad, you're not alone. Many UK nationals are now facing renewed pressure over unpaid foreign mortgage debts.

At Judicare, we are one of the few UK law firms specialising in overseas mortgage disputes and foreign property debt solutions. With decades of experience, we’ve helped clients write off more than €60 million in foreign mortgage debt.

Our specialist international team understand that every case is different, which is why we take a tailor-made approach, creating a strategy based on an in-depth understanding of your circumstances.

At Judicare, our expert solicitors can help you with:

  • Legal review of your foreign mortgage
  • Debt negotiation with your foreign bank
  • Defending foreign court action
  • Claims for mis-selling of your foreign mortgage
  • Exit strategies from your foreign bank loan

Contact our specialist solicitors for overseas mortgage disputes today

If you have received a legal notice from a foreign bank, are struggling with mortgage arrears, or simply want to understand your rights, call our solicitors for overseas mortgage disputes today on 01438 840258.

Why am I being contacted by a foreign bank or debt collector?

Many people took out mortgages through foreign banks when purchasing overseas property, particularly in Spain, Cyprus, Portugal, and France. At the time, these mortgages may have seemed like a good investment or a simple way to secure a holiday home. However, unforeseen circumstances led many to fall behind on payments or abandon properties entirely.

Banks across Europe have since reassessed the value of their mortgage books and, in many cases, sold their non-performing loans to third-party debt collectors. These entities, often referred to as vulture funds, are now aggressively pursuing repayment from borrowers in the UK, sometimes more than a decade after the original default.

Common reasons for defaulting on a foreign mortgage:

  • Change in personal circumstances – Illness, divorce, redundancy, or retirement can all impact your ability to pay.
  • Failed rental income plans – Many clients expected rental income to cover mortgage payments, but this income either didn’t materialise or wasn’t consistent.
  • Inappropriate financial advice – Particularly common with Swiss Franc mortgages or loans with complex repayment structures.
  • Unfinished developments – Some developers went bankrupt, leaving clients with worthless or uninhabitable properties.
  • Negative equity – Where the outstanding loan exceeds the value of the property, often due to local market crashes or currency changes.

We frequently hear from clients who believed the issue had gone away, only to be contacted years later, often in a very intimidating manner.

What is a vulture fund?

A vulture fund is a private investment company that purchases distressed debt at a discount and then seeks to recover the full amount from the borrower. These firms operate across Europe and are often more aggressive than traditional banks.

Major funds such as Cerberus, Blackstone, and Axactor are now well-known for pursuing old foreign mortgage debt. Once they acquire the debt, their sole focus becomes recovering money, often without regard to the borrower’s personal situation. Their tactics can include legal action, UK-based debt enforcement, and persistent communications.

Many clients contact us after receiving legal notices or demands from such funds, often unsure whether the debt is still enforceable or what their rights are. That’s where we step in.

How Judicare can help

Our legal team has decades of experience in helping clients resolve overseas mortgage problems. We understand the laws and enforcement practices in both the UK and key overseas jurisdictions, giving us a unique position to advise you clearly and confidently.

Whether you are still making payments on a property, have walked away from it, or are now facing legal action, we can help you:

  • Understand your legal position
  • Explore practical options
  • Negotiate with foreign banks and vulture funds
  • Protect your interests in both the UK and overseas courts

This isn’t about quick fixes or false promises. We provide honest, practical legal advice tailored to your situation.

What we offer

Legal review of your mortgage

Our first step is to analyse the terms of your current situation and your foreign mortgage agreement. We look at how the loan was structured, whether the bank complied with relevant consumer laws, and whether you received proper advice, especially if currency mismatches or risky loan terms were involved. This allows us to quickly identify your legal position, potential defences, and opportunities to negotiate a full and final settlement with your foreign bank or vulture fund.

For example, we regularly deal with Swiss Franc mortgage cases in Cyprus where the client was unaware of the risk that currency shifts could increase their debt significantly. In many such cases, we’ve identified breaches of duty by lenders or financial advisers.

Debt negotiation with your foreign bank

The majority of clients we talk with are unaware that it’s possible to negotiate with their foreign Bank over the outstanding mortgage debt, even years later.

In almost all cases where we are instructed by a client to negotiate a foreign mortgage debt, we’ve secured full and final settlements that close the matter entirely, giving those clients peace of mind, a clean break and freedom from any threats to their future.

Defending foreign court action

Even though the mortgage was taken out overseas, foreign banks and vulture funds can pursue enforcement here in the UK. This could involve:

We defend these actions robustly, raising jurisdictional and procedural challenges where appropriate. We also negotiate with creditors to avoid or halt enforcement while exploring settlement options.

Claims for mis-selling

If you were advised to take a mortgage that was unsuitable for your circumstances or were not made aware of the risks, you may have a valid mis-selling or negligence claim. This might include:

  • Taking a mortgage in a foreign currency without being informed of exchange rate risks
  • Being told that rental income would cover repayments, with no guarantee
  • Having a complex loan sold to you without explanation

We investigate these claims thoroughly and advise on whether compensation or debt write-off is possible.

Exit strategies

Sometimes the best outcome is a clean break. We can assist with legal options to surrender the property, reach a full and final settlement, or otherwise conclude the matter in a way that protects you.

Why choose Judicare?

Judicare is not a Claims Management Company or a generalist law firm. We are a specialist UK-based firm of solicitors dedicated to providing advice surrounding overseas mortgage disputes and cross-border foreign property debt solutions. Our team includes lawyers qualified in the UK and overseas jurisdictions, giving us direct insight into both sides of your legal problem.

We are regulated by the Solicitors Regulation Authority, which means you benefit from robust legal protections and professional standards. Unlike unregulated “foreign property debt advice” companies, we carry professional indemnity insurance and follow strict ethical rules.

What sets us apart is our practical, straight-talking approach. We don’t make unrealistic promises or use scare tactics. Instead, we listen to your concerns, explain your options clearly, and provide a realistic strategy to deal with the problem. We’re known for being approachable, thorough, and results driven.

We’ve helped clients resolve over €60 million of foreign mortgage debt. Whether you're facing legal action or just need advice, we’re here to help you take back control.

Frequently asked questions about foreign mortgage problems

Do not respond or agree to anything without legal advice. The letter may be a tactic to pressure you into payment. Let us assess the situation and guide your response.

Negative equity occurs when your property’s market value is lower than the mortgage owed. This is common in markets that saw sharp downturns. We can help you renegotiate with the lender or explore exit strategies to limit your exposure.

Yes, and we do this for clients regularly. Lenders are often willing to restructure loans, particularly if the alternative is default. We handle all communications and protect your interests throughout.

The lender may escalate recovery efforts, which could include court action overseas or in the UK. It’s always better to engage early and explore solutions rather than ignore the problem.

Yes, in many cases. Foreign judgments can be registered and enforced in the UK, depending on the country and treaty arrangements in place. We assess the enforceability and advise on possible defences.

Even if the property was repossessed or handed back, the lender may still pursue you for any shortfall after resale, plus legal costs and interest. This is a common misunderstanding.

Possibly, yes. If your mortgage was misrepresented or if you received negligent financial advice, you may have a claim. We can help establish whether legal action is viable.

We would advise against it. Claims companies are not regulated like solicitors, and you won’t have the same level of legal protection. With Judicare, you benefit from proper legal representation and regulated advice.

It depends on the complexity of the case and how cooperative the lender is. Some cases resolve in a few months; others take longer. We provide realistic timeframes from the outset.

Foreign mortgage defaults don’t usually appear on UK credit files, but enforcement actions might. Taking control early can help avoid lasting consequences.

In most cases, no. Many matters are resolved through written representation or negotiated settlements. If court attendance is required, we will support you throughout.

Absolutely. Whether you’re still trying to manage payments or want to sell the property, we can advise on your legal and financial options.

We can still assist. We often retrieve mortgage documents directly from the lender or through court disclosure, where needed.

Contact our solicitors for overseas mortgage disputes today

If you have received a legal notice from a foreign bank, are struggling with mortgage arrears, or simply want to understand your rights, call our solicitors for foreign mortgage disputes today on 01438 840258.