29 Dec 2011 12:00 AM:
I am currently in the process of buying an apartment from CAM bank, with the bank providing a 90% mortgage.
No one can say for sure, how the issues in the Eurozone will finally play out, but one possibility could be that Spain would return to the Peseta or a new currency which would devalue against the Euro which would then make Spanish exports more competitive and boost tourism.
If this new currency were to be worth say 30% less than the Euro, then are there any guarantees that the mortgage debt would also be converted into the new currency.
Otherwise property owners would immediately move to a position of being in negative equity.
Any thoughts on this?
Has anyone been able to get a guarantee of conversion to a new currency written in to their mortgage agreement?
Thread:
What would happen to a Euro mortgage, if Spain dropped the Euro?
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