Helping out married relatives.
Both mid 60’s, one retired on Irish Pension. The 2nd still working but wanting to retire soon.
They own a Spanish property outright worth €120k. The retired spouse is over there mostly in recent times, and fly back and forth on cheap flights. Cost of living is considerably less over there.
The home in Ireland has a mortgage remaining amount of €85k, unfortunately sold to Pepper a long time ago, and at a high interest rate. They have tried several times to move away from Pepper without success. Repayments are over 2k per month now and crippling. On retirement, the 2nd spouse will get a lump sum of €30k.
They want the Irish mortgage gone from Pepper so 2nd spouse can retire now. Having explored Irish options to refinance and age being an issue, i've begun to look at Spanish lenders for them. One option could be to take a non-resident mortgage out on the Spanish property to clear the Irish mortgage in full, and getting away from Pepper. Repayments would switch from €2k+ per month to €830 approx this way. Once retired, the €30k lump sum would be applied to reduce this either by term or repayment amount. In the meantime the proceeds of a vehicle here would be paid off (should be approx €10k conservatively).
There are rooms Let in the Irish property currently to help, and this will continue, approx €1300 per month. Plus state pension (2 x €1200), and private pension of €1200 per month.
Can anyone offer guidance on spanish mortgages, provide recommendations, or offer any advice on how to navigate this? Guarantor's would not be an issue.
TIA!
Both mid 60’s, one retired on Irish Pension. The 2nd still working but wanting to retire soon.
They own a Spanish property outright worth €120k. The retired spouse is over there mostly in recent times, and fly back and forth on cheap flights. Cost of living is considerably less over there.
The home in Ireland has a mortgage remaining amount of €85k, unfortunately sold to Pepper a long time ago, and at a high interest rate. They have tried several times to move away from Pepper without success. Repayments are over 2k per month now and crippling. On retirement, the 2nd spouse will get a lump sum of €30k.
They want the Irish mortgage gone from Pepper so 2nd spouse can retire now. Having explored Irish options to refinance and age being an issue, i've begun to look at Spanish lenders for them. One option could be to take a non-resident mortgage out on the Spanish property to clear the Irish mortgage in full, and getting away from Pepper. Repayments would switch from €2k+ per month to €830 approx this way. Once retired, the €30k lump sum would be applied to reduce this either by term or repayment amount. In the meantime the proceeds of a vehicle here would be paid off (should be approx €10k conservatively).
There are rooms Let in the Irish property currently to help, and this will continue, approx €1300 per month. Plus state pension (2 x €1200), and private pension of €1200 per month.
Can anyone offer guidance on spanish mortgages, provide recommendations, or offer any advice on how to navigate this? Guarantor's would not be an issue.
TIA!