Mortgage Terms - advice please!

Hi all....

I read the article on the newsletter the other day about interest only mortgage options which got me thinking as my mortgage with Banco Popular has it's annual review in June. It is the original developers mortgage taken out in 2004 and is standard 15 yr repayment.

I phoned my branch to find out what the new payment was likely to be and was shocked to find out my mortgage has a floor in it of 5.25% so I will see little of the benefit in the reduction in Euro base rates. The lady told me that I can switch to an interest only for the next 3 years but the floor would still be in place and it would cost me €1,000 in fees plus I need to fly out and sign in person.

I know there are a number of threads on here about mortgages but my questions are:

Could i move to a new lender for less than the €1,000 to change my arrangements with Banco Popular and benefit from a better interest rate?

Is it typical for a Spanish mortgage to have a floor such as this? I have one in the UK on my Nationwide Tracker but that is at 2.5%.

Best advice welcomed please!

This is news to me ! i phoned about my BP mortgage and was informed that the rate would come down in June and no floor rate information was given. If it is a floor rate then its a disgrace,

If you cahgne any detail you have to have it notarised - whch is even more cost.

Looks like I'll have to get on the phone to them to find out the right story..

What a farce - I was counting on the interest rate falling.

B