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05 Oct 2009 00:00 by summer1010 Star rating. 66 posts Send private message

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I have read with interest and increasing frustration, articles which indicate that Euribor has been falling steadily over the past few months.

Apologies this article is in Spanish, but it's easy enough to understand what's going on.

http://www.idealista.com/news/archivo/2009/09/30/0105583-caida-precio-vivienda-espana-boston-vegas&xtor=EPR-8-%5Bboletin_20090902%5D-20090902-%5Bnoticias__01%5D-%5B%5D-%5B%5D

Why is it then that my lender - UCI - is being obstinate, greedy and totally ruthless in increasing my monthly payments?  I'm astounded to see that as someone who lost their job in the last round of redundancies (in the UK) I can no longer afford their high rates and they keeping increasing my monthly payments.

I've pleaded with them to help me or to take back their property (which means I would lose over £45,000 already paid!)  They have nothing to lose, yet they are completely unwilling to help their customers in any way.

Unfortunately I can't change my lender, as the costs and the deposit for doing so are prohibitively high. New lenders want 30-40% deposit and the bureucratic costs amount to over £5,000. I seem to be totally at the mercy of UCI.

My apartment is available for long rentals, but no one seems to be interested.

Is there anything I can do, or shall I just let the debt mount up to an such an unpayable amount that they'll have to take action?

I would appreciate any legal advice.
www.golfapartment.co.uk

 

 

 





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05 Oct 2009 16:09 by mariadecastro Star rating in Algeciras (Cadiz). 8125 posts Send private message

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Maybe a dation in payment  serious attempt will work for flexibilization.

Best,

Maria



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Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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05 Oct 2009 17:17 by summer1010 Star rating. 66 posts Send private message

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Could you kindly explain what dation is please.

www.golfapartment.co.uk

 

 





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05 Oct 2009 20:08 by Jet48 Star rating in Estepona / Great Yar.... 110 posts Send private message

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Maria has a blog on this http://www.eyeonspain.com/blogs/costaluz/1094/legal-tip-27-dation-in-payment-a-right.aspx

Hope you can resolve your problems,

Bob


 



This message was last edited by Jet48 on 05/10/2009.

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06 Oct 2009 08:33 by mariadecastro Star rating in Algeciras (Cadiz). 8125 posts Send private message

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Jet 48: Thanks a lot! Very nice of you.

Maria



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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06 Oct 2009 18:09 by Roberto Star rating in Torremolinos. 3579 posts Send private message

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From a slightly different perspective, what infuriates me, is that while shopping around for the best rate for some savings last week, more than one bank insultingly told me that even at the paltry rates they were offering me, they were actually losing money. Like they were doing me a favour. While waiting patiently to see someone in one of the banks, I browsed through a brochure offering finance on new Mercedes cars - at almost 10% APR!!!! My (now) old bank, BBVA, offered 2.35% on the condition that I put some of my hard earned into a 5 year corporate bond - paying 5% but capital only guaranteed on maturity - if I want out any time before, I'm at the mercy of the market (I'm no financial wizz, but I reckon bonds are headed down). If not, then they'd only offer 2.15%. I asked for the 2.35 on the lot - they said no, but they could offer me a "gift" of the equivalent difference (a couple of hundred euros perhaps) Silly me thought they were offering to credit my account with the difference. No, they were offering me suitcases. WOT? We've got luggage shops for that, I told them. I come to banks for money.

I withdrew my funds from BBVA. They wanted to charge me (a couple of hundred) for a transfer or bankers draft. I told them I'd take it in cash. They orderd the cash from the bullion company - at their expense. How dumb. While counting it out, the clerk made an error of a couple of grand - in my favour. I didn't bother to tell her. I knew they'd spot it when they cashed up at close of biz, but decided to let them sweat a bit. I returned it later, naturally, when they called me in a blind panic. They should've just given me a draft, which really costs them nothing. Morons.

Meanwhile, I took my dosh to Solbank who offered 3% - but not before insulting me again with the woe is me tale of how they were losing money by taking my deposit. What utter cr*p. They even tried to sell me a 2 year Telefónica bond - as if I don't already have enough hassle with that particular company. If the share price goes up by an average of up to 24% over two years, I get the same rate on my investment. But interestingly, if it goes up by more than that amount, I get 2%. Go figure.

Whether you are a saver or borrower, it seems to me that the arrogance of banks towards it's customers remains totally undiminished despite the mess they got themselves into. As long as governments continue to support them with tax payers money, I can't see this trend changing any time soon. Why they can't just get back to basics, charging borrowers slightly more than they pay savers, I don't know. Too big, I guess.

Don't even get me started on the car scrappage scheme......

Rant over - sorry for hijacking the thread.



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06 Oct 2009 20:15 by summer1010 Star rating. 66 posts Send private message

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Roberto, I sympathise fully!  Don't even get me started on my mortgage lender UCI.  They don't even have a customer facing office, so the only way I can contact them is via email or I have to phone them from the UK to Madrid on a premium rate number!! fantastic customer service.

Anyway, I asked them to explain the details of my current arrangement and this is what they say:

'Like the vast majority of mortgages in Spain your mortgage rate is variable. Rates are usually reset on a semi-annual or annual basis. In your case this is semi annual. The semi-annual periods are always February - July and August - January. The variable part of the loan, IRPH, or the average mortgage rate in Spain in a particular month, is taken from the month preceeding the 6 month period, i.e January and July. A margen of 0.65% is applied to this rate. In January IRPH was 6.084%. In July IRPH was 3.5% hence the rate has been fallen by 2.58%. The instalment is fixed for these 6 month periods regardless of the rates published in each month during the period.  The rate will be reset in January 2010 according to the prevailing IRPH or average mortgage rate.'

My question to them was - why were my repayments lower when the interest rate was higher, than they are now when the rate has fallen by 2.58%, my repayments have gone up by 280 euros a month!   I'm no Einstein but am I really that stupid? I'm banging my head against a brick wall trying to get some sense out of them.

Bankers and politicians all in the same bed and until they go through an acrimonious divorce, we the taxpayers are to going to continue paying for their greed and incompetence.

www.golfapartment.co.uk

 





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06 Oct 2009 21:12 by Chimps Star rating. 130 posts Send private message

 

Perhaps I may be the odd one out here.

With the exchange rates as they are I really was feeling the pressure. Nothing ventured nothing gained so I contacted the Bank.

They swiched me to an interest only mortgage for 3 Years at 3.5%  .Yes it took time but they really were very good and have no problem in giving them a thumbs up. Banco Popular. Banks get stick and deserve it but they were fine by me.

Anyone else ? Just Say Chimps gave you the nod


 



This message was last edited by Chimps on 06/10/2009.



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06 Oct 2009 21:50 by Roberto Star rating in Torremolinos. 3579 posts Send private message

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3.5% ? Damn. Should've gone to Banco Chimps. Would I get any free luggage with that?



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Mark Twain

 

 

 




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06 Oct 2009 22:12 by abbbb1 Star rating in Essex and Ciudad Que.... 308 posts Send private message

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The old adage "You win some, you lose some is certainly true".

My repayment mortgage rate dropped from about 6.5% to about 3.5% in September (solbank)-  reviewed annually. That is the good news, but I invested some money in one of their accounts, and the interest rate has turned out to be totally rubbish!  It was going to be 3% when I opened the investment account, but in the space of two weeks had halved.  I am consoling myself with the fact that it is only for a year at the most!!!



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07 Oct 2009 17:46 by Chimps Star rating. 130 posts Send private message

 

Roberto

I can have a word if you want and you may get a cuddly toy

abbbbb1       No I have probably lost a packet on the property but just trying to hang in there till the market turns

This was the last throw of the dice and I really wanted to keep the property which I really like.

If nothing else it does show that it can be done. May lose the lot later but a least I went down fighting





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