Spanish property investors struggling with repayments
Many Britons who have bought property in Spain are now struggling to meet their monthly mortgage repayments due to higher interest rates and a fall in the value of the pound, according to experts.
Law firm DWF says it has seen a rise in the number of people seeking to renegotiate their loans or are looking for advice on alternative options, which could suggest that other areas, such as the Brazilian property market, offer a safer choice.
Antonio Guillen, Spanish lawyer with DWF in Manchester, warned that investors who allow their property to be repossessed could face consequences in the future.
If housing is reclaimed and sold and the value is not enough to cover the outstanding mortgage, the bank is entitled to claim against the borrower for the shortfall, which could lead to the lender issuing proceedings in the UK.
Meanwhile, ShelterOffshore.com said recently that investing in Brazilian property could be a way to offset the depreciation in value of British-based assets.
