Mortgage Problems

There can be all sorts of different reasons why you may wish to take out a mortgage when buying a property abroad. Your funds could be tied up in another venture and taking out a mortgage may allow you to buy now rather than later or even keep your funds working elsewhere.

Unfortunately many people who previously took out mortgages in order to buy property abroad are now experiencing problems servicing the repayments to the lending bank.

Personal circumstances may have changed, the loss of a job for example or perhaps a reliance on rental income which has not materialized are some of the factors that can impact upon the ability to maintain a mortgage.

Individuals who may have been given bad advice in relation to which currency a mortgage should be taken in have also seen huge fluctuations in exchange rates which in extreme cases has resulted in them now owing more to the bank than they originally borrowed. This is particularly relevant to Cyprus and loans taken out in the Swiss Franc denomination.

News

Tax on Mortgages in Spain - Update

The situation with the tax that needs to be paid for new mortgage registrations has been clarified with the President of the Government, Pedro Sanchez, announcing measures to make banks, not borrowers pay the tax associated with a mortgage. Clarity The...

Confusion in Spain over mortgage taxes

A recent Court case in Spain has both clarified and caused confusion over who should pay the taxes associated with taking out a mortgage to buy a property. The Judgement issued by the Supreme Court ruled that it was the Banks - and not the borrowers - who...

Spanish Court collapse

Can the Spanish avoid an absolute collapse of their Court System? As the Court System in Spain groans under the weight of the number of cases there have now been calls to increase the number of Courts to try and tackle the huge delays that have been...

Purchase contracts in Spain

When buying a property in the UK you may be used to there being a purchase contract. When buying in Spain there may be several different types of contracts to sign and there may indeed be several in one transaction. Unfortunately these different types of...

Insurance and Specific Risk policies on foreign properties

Unless you have bought property in the USA you may not have heard of Title Insurance. Title insurance is, in effect, an indemnity insurance policy which protects against financial loss as a result of defects in the title to the property. It is not a...
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