Mortgage Bank rate

An interesting question in the UK we provide full IFA advice and the UK iht scenario is based upon "worldwide" assets coupled with the fact that one cant be hit for "double taxation" if you carried out the Uk scenario one would have a debt on the UK  property thus potentially mitigating IHT but not a debt on the spanish one and the spanish iht scenario is very different and not an area I am well versed in (nor do i really want to be!)

overall i stil believe it to be currently the better choice (iht aside) as if one takes upto 75% ltv on their UK home the rate could be as low as 2.9% to my knowledge the average in Spain is now circa 5%

I know this is old thread but I am coming up to a BoA mortgage review on 4-02-2010 and hope that my rate will go down from the current 4.5% to something lower.

Like many others I took the option of 0.9% upfront and the euribor + 1% mortage.

However I have been taking to another bank and some other people who have led me to believe the rate used for euribor 12 month should be the rate on the day of review and not an average.

I intend to go and see the manager next week in Duquesa and ask for an explanation of the calculation.

Also, if you have a collar of say 4% is this collar a euribor collar, or a combination of euribor plus the 1 %.

From what I can tell the BoA mortgage is very expensive so I may be looking to move.

At present the loan to value ratio varies from 50% to 65% and also there will be set up costs.

Is anybody else looking to change and is it worth pooling our ideas.

It may be if there is a few of us looking to change banks we may be able to get better individual rate from BoA  if there is suddenly a hole in their loan book.

Any ideas?

This message was last edited by manilvajl on 23/12/2009.

Hi Jeff

I am in exactly the same position as yourself.  I had not thought about the collar and have a review myslef at the beginning of February.  I'd be interested to hear what the bank have to say and i'm interested in pooling ideas and maybe making a move.

Steve

www.duquesa-village.com

Hi Jeff,

I replied to your email...mine is 'collared' at about 3.75% I think...i know i should know but I have forgotten...  count me in if there is mileage in it .

Mine is with Barclays and was at an effective rate of 6.07 until October

Following the reduction in eurobor rates it is now at an effective rate of  2.03 until October 2010

The Barclays office in Sabi is very very helpful at providing details.

Do not forget that there will be costs in redeeming one mortgage and setting up another.

Merry Xmas & Happy New Year to you all

 http://www.eyeonspain.com/blogs/costaluz/2682/legal-tip-201-oportunity-to-sell-your-house-in-spain-i.aspx

Having paid our last 12 months mortgage payments with Banco de Andalucia at 6.5% (Euribor + 1.25%), I have just learnt our new rate for the next 12 months beginning Jan.

Pleased to say that this is a total of 3.25%, that is to say a 12 month average Euribor rate of 2% + 1.25%.

Hope this helps  you all.

I have just had my annual review with Banco Andalucia on the mortgaqe (euribor plus 1%) and they have reduced it from 4.5% to 4%.  This is very dissapointing as I had expected it to be about 3% (12 month average Euribor rate of 2% + 1%).   I guess there must be some sort of collar on it.     very frustrating !!!!

Steve

www.duquesa-village.com

Steve, that is really disappointing.  I think ours too may have a 4% collar!  It may well be worth trying to negotiate with them - we're going to try.