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The Masked Tulip

Spanish Banks

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...ahhh...but guess who will have to help bail out any EU banks which fail.....yes ..us ...if we remain in the EU.....but in 2007 / 8 the EU did not help to bail our Banks which were in trouble....we were on our own.....who does not want BREXIT.....only fools.... :rolleyes:

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Hmmm. I'm very close to buying a flat in Malaga with a Spanish mortgage. Am I being foolish? If Euro crumbles easier to pay it off in Sterling. If Sterling drops I have an asset in Euros.

Or if the banks go under I lose it all. What happened to foreign mortgage holders in Greece?

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This can't be right- Membership of the EU is very touchstone of economic success- so we are reliably infomed. Pay no attention to those millions of unemployed people in the Eurozone- according to economist's they have simply made a rational choice to opt for more leisure rather than working.

Edited by wonderpup

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...ahhh...but guess who will have to help bail out any EU banks which fail.....yes ..us ...if we remain in the EU.....but in 2007 / 8 the EU did not help to bail our Banks which were in trouble....we were on our own.....who does not want BREXIT.....only fools.... :rolleyes:

I think if you look back you will see that Spanish banks came in to rescue British banks/building societies.

Santander did it with a few (eg Abbey National, Alliance and Leicester, Bradford & Bingley), and only last year Sabadell bought the TSB bank.

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italian banks are in even worse shape.

Its genuinely hard to come up with who's the ugliest when comparing Spain and Italy.

Both banking systems are totally fcked .... but in slightly different ways.

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Hmmm. I'm very close to buying a flat in Malaga with a Spanish mortgage. Am I being foolish? If Euro crumbles easier to pay it off in Sterling. If Sterling drops I have an asset in Euros.

Or if the banks go under I lose it all. What happened to foreign mortgage holders in Greece?

Buy in ash, or mainly cash.

Hedge your currency exposure. Or fix the cost.

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I don't know anything about this, but saw on another forum that a German resident in England was refused a euro loan from a german bank to buy a german property, because they did not wish to accept the risk of the provision to convert it to sterling.

CHAPTER 9

FOREIGN CURRENCY LOANS AND VARIABLE RATE LOAN

Article 23

Foreign currency loans

1. Member States shall ensure that, where a credit agreement relates to a foreign currency loan, an appropriate regulatory framework is in place at the time the credit agreement is concluded to at least ensure that:

(a)the consumer has a right to convert the credit agreement into an alternative currency under specified conditions; or

( B)there are other arrangements in place to limit the exchange rate risk to which the consumer is exposed under the credit agreement.

2. The alternative currency referred to in point (a) of paragraph 1 shall be either:

(a)the currency in which the consumer primarily receives income or holds assets from which the credit is to be repaid, as indicated at the time the most recent creditworthiness assessment in relation to the credit agreement was made; or

( B)the currency of the Member State in which the consumer either was resident at the time the credit agreement was concluded or is currently resident.

Member States may specify whether both of the choices referred to in points (a) and (b ) of the first subparagraph are available to the consumer or only one of them or may allow creditors to specify whether both of the choices referred to in points (a) and (b ) of the first subparagraph are available to the consumer or only one of them.

Edited by Steppenpig

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Yes. Loads.

Sounds like when the banks fail prices will crash again and it'll be a great buying opportunity for anyone with cash. Not as an investment, of course, they're smart enough to have substantial taxes on owning property.

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There's the 'official' reports, which state that Spanish banks have taken 'some' houses of the mortgagee.

There's reports coming from my Spanish relatives who claim that they've taken on *loads* of buildings.

And that a lot of mortgagee have stopped paying the mortgage and are just living in the house.

Whatever the official report is, the actual situation is much. much worse.

Thinking of buying in Spain?

Rent!

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There's the 'official' reports, which state that Spanish banks have taken 'some' houses of the mortgagee.

There's reports coming from my Spanish relatives who claim that they've taken on *loads* of buildings.

And that a lot of mortgagee have stopped paying the mortgage and are just living in the house.

Whatever the official report is, the actual situation is much. much worse.

Thinking of buying in Spain?

Rent!

As I understand it long-term rent is dirt cheap with lots of tenant protection.......

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As I understand it long-term rent is dirt cheap with lots of tenant protection.......

It is.

Buying a house appears to invole picking up the previous owners unpaid bills.

Horrendous risk.

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