Negative Equity: End of Interest Only Fixed Rates

A question asked daily; I have an empty property in Europe but can’t sell due to negative equity. Is there a way out? And despite many claiming to be “mortgage prisoners” or “trapped” by Negative Equity, there are definitely options to be taken to resolve any Negative Equity burden. It is realistic to expect excellent Negative Equity settlements in Portugal, France, Cyprus, Bulgaria and even Canada, but it is important to research the best experts out there. 

End of Interest Only Fixed Rates

With a focus on Spain, I have been noticing a new trend which is worrying. Many borrowers who purchased pre-2008 may have financed the purchase with a Halifax-Lloyds Mortgage product. Whilst initially these products are very serviceable on an interest only basis this period is coming to an end for many. The typical product was sold on a 10 year fixed interest rate and as this expires we have seen mortgage payments rise to clearly unsustainable levels.  For example, I met an elderly couple whose mortgage rose from €250pcm to €1,600!! How they were expected to pay this I have no idea. There are signs of loose lending here as this product payment increased in conjunction with retirement age, I would definitely question the lending policies in this instance.

With the big increase in mortgage payments coupled with community fees, IBI taxes, and reduced winter rent many customers will find these mortgages unsustainable. Coupled with Negative Equity this is a substantial burden, but there is some positivity here. As I have mentioned previously it is realistic to achieve an excellent settlement. My Advice, look for those who specialise in European Property and consider a team who have the full package and expertise. 

Don't be afraid to message me in relation to similar issues.