Negative Equity: End of Interest Only Fixed Rates

By on March 8th, 2017

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Negative Equity: End of Interest Only Fixed Rates

I have an empty property in Europe but can’t sell due to negative equity. Is there a way out?

EU Property Solutions are asked the aforementioned question daily. 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. We are experts in this field and primarily assist borrowers in Spain but have achieved excellent Negative Equity settlements in Portugal, France, Cyprus, Bulgaria and even Canada.

End of Interest Only Fixed Rates

With a focus on Spain, we are 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, we met an elderly couple whose mortgage rose from €250pcm to €1,600!! There are signs of loose lending here as this product payment increased in conjunction with retirement age, we would question lending policy here.

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 and EU Property Solutions have just this week successfully negotiated two debt write-offs on this type of mortgage product. Brilliant, life changing results.

Our Success

Our success is not limited just to this lender and we work across Spain with a variety of Cajas’ and Banks’. We have an excellent relationship with core lenders and our expert legal team work tirelessly to ensure results are achieved. Our knowledge and contacts allow us to quickly move your case forward and remove the stress of the situation acting as an intermediary between you and the lender. This reduces the emotion and anxiety involved and brings about amicable settlements.

EU Property Solutions assist all clients in Negative Equity.  We work to dispose of the negative asset whilst providing a solution to the Negative Equity Shortfall – be this by way of write off or a much-reduced settlement. Call us today on +44 (0) 330 124 1230 to discuss your case.

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