Promise of Mortgage Re-payments Reduced

Hi All,

I have been approached in the last 2 days by 2 separate companies offering to renegotiate my mortgage with my lender for me for a fixed up from fee of either 1,200 or 1,275 Euros. 

Has anyone else been approached?

I am interested in an interest only mortgage but am reluctant to part with an up front fee after being stung by "Ready Rental Properties" earlier this year for 1,500 Euros plus a non paid rental

One of the companies is IPP Global S.L. - anyone dealt with them? 

see their article here

They are partners with a British PLC company "Partners In Property Solutions plc"  (Registered in England No. 3883536) who trade as "Movewithus.co.uk" & "Switchwithus" plus others so look like a valid company with a reputation to protect.

What you get for your money is a Legal Team that renegotiate your mortgage with your lender to reduce the interest rate in line with what Spanish residents typically pay - these rates usually lower than those paid by non residents.  The will notarise the change of terms for you at the Notary office.

Any thoughts / feedback?

Regards

Frankie

Hi Frankie - I am not involved in mortgages but I think you should be very careful about paying a lump sum to someone to re-negotiate for you.  Most banks have staff who speak perfect english who will discuss any changes with you.  I know some have been reluctant to negotiate before, but this should be changing as otherwise they will end up re-possessing more and more properties.

I understand that in Spain you will have to pay for a new mortgage to be arranged, and this will cost you (I believe) 1% of the loan, as well as Notary fees.  If you did decide to go with one of these firms you should check if the re-mortgage fee from the lender is included in their offer.

As I said at the start, I am no expert and this is only what I think is correct.  There is a mortgage broker on the forum - Smiley - who has helped a number of people on here so you could contact him for proper advice.

Good luck

Hi Frankie

I would recommend you do not part with any money up front for any reason however convincing they sound.

 All legitimate bussineses will do the work first and then ask for payment after. 

Remember, changing your mortgage is not as straight forward as it is in the UK.  It will cost you substantially more as this is the way the bureucratic system works in Spain and if this company is telling you they will do the work for a fixed fee with nothnig more to pay - well, if it sounds too good to be true, it is!!

www.golfapartment.co.uk

Hi Frankie

This is why this web site is soo good.

Just read your post and I could have wrote it myself. 

I too have been contacted by phone in the last couple of days by PR marketing and had the same conversation as you with a very convincing gentle man, who promised me a excellent reduction in my monthly payments (by going onto interest only for a two year period).  This was music to my ears and then came the string in the tail, that I would need to pay a fee up-front of 1200 euro's for the service - and if my application was knocked back I would get my money back (minus 250 euros for thier admin costs).

I have the same issue as you, I had dealings with Ready rentals (though didn't lose any money to them) and this has left me very wary of any company from Spain phoning me up out of the blue offering a deal that appears too good to be true.

Sorry I can't offer any advise(let me know what you decide), but if anyone has had any dealing with this company (good and bad), please could you let me know ?

Thanks

Mark

You can subrogate your mortgage - ie get another bank to take over the loan for you - such as through the Halifax Switch and Save scheme.

To negotiate a reduction with your existing lender will always require a trip to the notary and some costs to amend the mortgage deeds.

Anyone offering to do this for a fixed fee should be viewed with caution I think - as I don't know how it can be done

cheers

Chris

I took a look at Frankierey's site (IPP) and I wouldn't touch it with a bargepole partly for reasons that Europa and Summer gave.  Here's my two pennies worth:

1) the costs associated with cancelling a mortgage and taking out a new one normally make it prohibitive in Spain unless the new deal is exceptional or the old mortgage exceptionally bad.  In this climate do you think you will get such a good new offer from the banks that it will make sense to pay these guys up to 1,500€, pay cancellation charges, set-up fees, notary and legal costs etc?

2) In my experience most people who get reduced monthly payments end up paying for it in the long run because there are a mass of charges and deferred payments stuck on the back-end.

3) are they a reputable and trustworthy company?  I don't know but their website screams vultures from the spelling mistakes that would make Gordon Brown blush to the offers of inspection tours and distressed properties.  Would any reputable company invite you to pay 1.500 € by PayPal before they have even communicated with you never mind done anything.

If you think your mortgage is expensive and you want to tackle your bank on the subject go and see them with a professional along side if need be.  I wrote a guide on what to do in case of Spanish mortgage payment difficulties which deals with refinancing and the like in sections 4 and 5:

http://www.advoco.es/home/22-latest/27-advice-if-you-cant-pay-your-spanish-mortgage-call-for-free-consultation.html 

I think a lot of people have been hit by the fact that at the end of last year the EUROBOR rate was at a very high rate and those with mortgage review dates then were stuck with rates of 6 to 7% interest for 12 months.  I know, I was one!  However, my next review has just kicked in and I am now paying 2.05% - my interest has dropped to a third of what it was!!

In a lot of cases, it will be a case of sitting it out, then locking in for 12 months at a fixed bargain rate. 

I know some banks are agreeing to reduce the base rate for those that negotiate, but are charging extra on the "plus" over EUROBOR which over 20 years of the mortgage will be a lot more in the long run!

We too have been contacted by them. I did not realise they wanted money 'up front' . If that is the case, we shall not be dealing with them.People who are struggling with their Spanish mortgages are being given hope by these people.

Like many others I am feeling downhearted about the Spanish property market and mortgage rates.  We deal with Cambank who are unhelpful and dificult to deal with. We are paying a high interest rate which will be reviewed in December. I will be interested to see what they offer this time but if ther is not a huge reduction we may have to consider calling it a day.

I've got to the point where I no longer wish to keep my property in Spain as the whole experience has left a bitter taste in my mouth ! At least I know I'm not alone but it doesn't help to pay the mortgage does it .

We too have been contacted by them. I did not realise they wanted money 'up front' . If that is the case, we shall not be dealing with them.People who are struggling with their Spanish mortgages are being given hope by these people.

Like many others I am feeling downhearted about the Spanish property market and mortgage rates.  We deal with Cambank who are unhelpful and dificult to deal with. We are paying a high interest rate which will be reviewed in December. I will be interested to see what they offer this time but if ther is not a huge reduction we may have to consider calling it a day.

I've got to the point where I no longer wish to keep my property in Spain as the whole experience has left a bitter taste in my mouth ! At least I know I'm not alone but it doesn't help to pay the mortgage does it .

Re:  Mortgage Reviews

I'm with Solbank, and had a review in September.  I was paying about 6.7%, and when they said it the rate was going to be reviewed I wasn't optimistic - but it dropped over 3%!!  So, at least that is something to look forward to - until the next year!!

Even on a small mortgage this amount was very useful - so I'll have my fingers crossed for you, Manor Park - but I see that I wasn't so lucky with the mortgage rate as some on this thread!

Thanks abbb1. I hope we get a good reduction too !  The bank are so frustrating to deal with. I can't make them understand that if the payments are more manageable we are more likely to keep the property and cause them less trouble in the long run !