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Simple Spanish Mortgages Blogs
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HOW TO STOP THE RAIN IN SPAIN Aug 08
Over the last eight months or so retired people living in Spain have been finding it increasingly difficult to make ends meet, caused mainly by the £ versus the € exchange rate fluctuations. The weak Pound has effectively wiped nearly 25% off the value of UK pensions causing, in some cases, serious hardship. To make matters worse, because of the over supply of property here in Spain people are also finding it almost impossible to sell in order to downsize and release some equity and so they find themselves stuck in a deepening rut.Most British Ex-pats who move to Spain on a permanent basis and after selling their UK property buy their Spanish property for cash and for many it's the first time in their lives that they have been mortgage free. Life is conspiring against them and now when they should be taking it e asy in retirement and financial worries have returned yet again. What have they done to deserve it and what can they do to make things better for themselves. Well, they could take out a mortgage! "What" I hear them say "A mortgage at our time of life!" Think about it! They have worked all their lives to raise a family and buy a house. When the children leave home mum and dad say to themselves "it's just us now" why not sell the house and go and live in Spain or somewhere else where we can enjoy life in the sunshine and the kids can come over for holidays so we will still see them.
"Won't that be sweet" and why not we deserve it after all these years. Unfortunately the only thing in life that is certain is that everything changes sooner or later, for better or worse and even the best laid plans can go astray. So, one needs to be ready and adaptable. With the current credit crunch you may think that its now impossible to use a mortgage to improve ones quality of life, this is not true, it certainly is more difficult now but there are banks who still have the confidence and foresight to be investing in Spanish real estate, although with more caution than in previous years and this is only right.
Being in the mortgage business we see people everyday who have not realised that what they thought was the cause of their problems (their beautiful house in Spain) could in fact be the answer to their prayers. Peoples first reaction is to say "but our house is our kids inheritance, we cant mess about with that" Our answer to that quiet understandable reaction is " you know your kids best, what would they rather have, your house and everything in it when you have gone or would they like to see you having a happier and better quality of life whilst you here" If the answer is the first one, then tell them that you will expect their cheque on the fist of every month from now on! To be serious though, there are many good and valid reasons why you could consider taking out a mortgage later in life, not least of which is the inheritance tax issue. Spanish Inheritance Tax can be vicious and totally different to the UK. There are many solutions for property owners in Spain who are feeling the pinch and there is no "one size fits all" remedy as everyone's circumstances are different. If you think that a mortgage might be something you would like to explore further then it would be an idea to seek the advice of a qualified mortgage adviser and be certain that you understand the various aspects of what's available to you before you make any commitment.
Rosemary Nettleton
Spanish Mortgage Adviser
www.simplespanishmortgages.com
Free advice given on the following: Spanish re-mortgage, buy to let mortgage, Spanish tax. Second mortgage, 40yr m ortgage, lifetime mortgage, refinance mortgage, equity release, no proof of income and many other options available to suit all circumstances. It costs nothing to find out!
Over the last eight months or so retired people living in Spain have been finding it increasingly difficult to make ends meet, caused mainly by the £ versus the € exchange rate fluctuations. The weak Pound has effectively wiped nearly 25% off the value of UK pensions causing, in some cases, serious hardship. To make matters worse, because of the over supply of property here in Spain people are also finding it almost impossible to sell in order to downsize and release some equity and so they find themselves stuck in a deepening rut.Most British Ex-pats who move to Spain on a permanent basis and after selling their UK property buy their Spanish property for cash and for many it's the first time in their lives that they have been mortgage free. Life is conspiring against them and now when they should be taking it e asy in retirement and financial worries have returned yet again. What have they done to deserve it and what can they do to make things better for themselves. Well, they could take out a mortgage! "What" I hear them say "A mortgage at our time of life!" Think about it! They have worked all their lives to raise a family and buy a house. When the children leave home mum and dad say to themselves "it's just us now" why not sell the house and go and live in Spain or somewhere else where we can enjoy life in the sunshine and the kids can come over for holidays so we will still see them.
"Won't that be sweet" and why not we deserve it after all these years. Unfortunately the only thing in life that is certain is that everything changes sooner or later, for better or worse and even the best laid plans can go astray. So, one needs to be ready and adaptable. With the current credit crunch you may think that its now impossible to use a mortgage to improve ones quality of life, this is not true, it certainly is more difficult now but there are banks who still have the confidence and foresight to be investing in Spanish real estate, although with more caution than in previous years and this is only right.
Being in the mortgage business we see people everyday who have not realised that what they thought was the cause of their problems (their beautiful house in Spain) could in fact be the answer to their prayers. Peoples first reaction is to say "but our house is our kids inheritance, we cant mess about with that" Our answer to that quiet understandable reaction is " you know your kids best, what would they rather have, your house and everything in it when you have gone or would they like to see you having a happier and better quality of life whilst you here" If the answer is the first one, then tell them that you will expect their cheque on the fist of every month from now on! To be serious though, there are many good and valid reasons why you could consider taking out a mortgage later in life, not least of which is the inheritance tax issue. Spanish Inheritance Tax can be vicious and totally different to the UK. There are many solutions for property owners in Spain who are feeling the pinch and there is no "one size fits all" remedy as everyone's circumstances are different. If you think that a mortgage might be something you would like to explore further then it would be an idea to seek the advice of a qualified mortgage adviser and be certain that you understand the various aspects of what's available to you before you make any commitment.
Rosemary Nettleton
Spanish Mortgage Adviser
www.simplespanishmortgages.com
Free advice given on the following: Spanish re-mortgage, buy to let mortgage, Spanish tax. Second mortgage, 40yr m ortgage, lifetime mortgage, refinance mortgage, equity release, no proof of income and many other options available to suit all circumstances. It costs nothing to find out!