raddickle

This is a question that I have been pondering for some time. I have a mortgage with a Spanish Bank. I still have 9 years of payments to make.
In light of what has happened, what is happening and more importantly what is likely to happen would I be better off keeping that mortgage or paying it off now. To pay it off now I would have to take out a mortgage in England.
I read at the weekend that the Euro is unlikely to survive for more than 4 or 5
more years. I wonder how that would affect a euro mortgage held with a Spanish bank. Do any of you financial wizards out there have any suggestions?

cricketman

Firstly, dont believe everything you read in the papers, they all have their vested interests depending on who their owner and advertisers are!

Secondly, I dont understand why you are considering changing to a UK mortgage anyway. If the Euro goes under then you're mortgage would shrink in real terms as the Euro gets weaker against the pound. You'd just lose out in terms of early repayment fees and transfer fees.

Even if your Spanish bank went bust it will have no consequence on your mortgage. Look at the UK Northern Rock examples

missile

I am not too sure that spain would step in to shore up their banks like UK did with Northern Rock. However I do agree OP should not over react to press speculation.

In any event, I doubt OP be able to get a UK mortgage for his spanish property

raddickle

So I guess I'm better staying where I am. However I would have no problem in raising a mortgage against my UK property to pay off the one in Spain.

expat2be

I would hold station and not change anything.

bil

Tired old cynic that I am, I wonder if this story might have been deliberately fed to move the markets with an eye to making a quick buck?

jdr

Sounds like it, trying to quickly get shot of stuff they certainly don`t want.