Confused - SpanishvMortgage

Hi I wonder if anyone can offer advice. We have an enormous Euro mortgage on a property in Marbella. It has now moved from an interest only basis where it was manageable to a repayment and higher interest basis which is frighteningly large. The only option the Bank has offered is for us to take out an additional loan (which they will offer at a low interest) for 3 years and our repayments will then be lower! At the end of the 3 years they argue we will have paid off the additional monies and we will need to re-mortgage. We are very very worried about borrowing even more money albeit on a high end property. We haven't been able to sell it,we have now retired and are feeling vulnerable. The property is re ted but there is a shortfall of over 1000 euros a month. Our expectation was to sell before we reached this stage.
Our UK financial advisor also cannot make sense of this.

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The thought of borrowing more money when you are already struggling sends shivers down my spine!

Re-mortgaging in Spain is expensive, it's not like the UK, that's why the remortgage market in Spain is practically non existent.  And the fact that the property will once again continue to lose value over the next couple of years means doing this is very risky.

Have you tried renegotiating another interest free period? 

 

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