Mortgage holders in Spain are flocking to their banks to renegotiate their repayments. In Alicante, according to the National Institute of Statistics, during August 150 homeowners per day went to their bank to argue for a lower repayment. Whilst the Euribor rate has dropped considerably over the last 12 months and mortgage repayments have fallen accordingly many people are now unemployed and cannot keep up with repayments. Mortgage holders have in the majority opted for a no interest payment period that lowers the monthly amount, albeit temporarily or they have extended the term of the original loan. The number of mortgage holders that find themselves in the situation where they are unable to meet their mortgage repayments is expected to continue to rise throughout 2010, when unemployment is set to hit 20%.
Source: The Costa Calida Informer 06/11/09 - 20/11/09
