Perhaps you bought during the boom years around 2006, when UK property prices were doing so well and you jumped on the band wagon with those who fancied investing in their own ‘place in sun’. Mortage lenders, both British and Spanish, were offering 100+% mortgages on Spanish properties and many believed that potential rental income could easily cover their payments.
Several years down the line, the market was hit by the falling value of the pound against the (then) mighty euro, and the knock-on effect in the UK of the US economic troubles. You realised that the developer had in fact ‘oversold’ the potential rental income of your property and rental prices were also falling. Your mortgage repayments have hiked up, costs are spiralling and the economic crisis means that you just can’t find the money needed each month. Worst of all, you discover that your property is now in negative equity. This is a problem that so many people are suffering at the moment. It’s time to face the truth and deal with it… more about problems paying a mortgage in Spain