Recently we have seen a large increase in enquiries from people who have overseas mortgages, specifically in Cyprus and Spain, asking the question “Can a foreign debt be collected in the UK?”. Many are concerned about the rising number of loan sales being undertaken by Banks across Europe. These loan sales are a result of Banks looking to clear all ‘problematic’ debt and tidy up their books.
‘Problematic’ debt generally falls into the following categories:
- If you are in arrears, even if you are only one/two months behind
- Unaffordable repayments as a result of the end of your interest-only period
- Your property is in negative equity
Many people think that ignoring a foreign mortgage problem will see it go away. Yes, a lot of time has elapsed since the 2008 crash but unfortunately, these Banks do not forget!
Banks are still relatively civil in most instances provided that you engage in some form, but across the board, their patience is wearing thin. If you ignore your lender, they may use the following to recover money:
- Applying for European Enforcement Orders
- Appointing strong legal firms to chase you in the UK
- Making their own enquiries as to the people’s worth/assets
- Most worryingly for our clients, the sale of loans to Vulture Funds
Foreign Banks in the main are still approachable. As ever it’s a case of the right type of engagement, usually undertaken by a trusted party.
How can we help?
You need someone like EU Property Solutions because:
You need someone trusted by the Banks. They appreciate straight-talking and know we perform on cases. We only act for the client but we understand how the Banks work and can communicate effectively with them.
Sometimes Banks are not fully truthful. EU Property Solutions cut through and call out any discrepancies from any financial institution.
Even though we are looking to alleviate the problem here, Banks and their advisors need to be driven.
Some people believe that this ability to chase foreign debt in the UK, as provided for under Cross Border Claims EC 44/2001, will diminish with Brexit.
We do not see this happening as the EU will still be our main trading partner and such provisions ensure safer trade conditions for all.
Under law, anyone, including Bank’s and any other foreign trading entity can secure a Judgement in their country and then bring this to the UK and apply for a European Enforcement Order.
This Order when granted, and they usually are, enables the creditor to pursue clients here in the UK, which can, in turn, see UK assets such as homes, businesses and pensions, come under threat.
The legal costs in such recovery actions can be horrific and you will be asked to pay these too.
Definitive advice is imperative. Relying on uninformed opinions is no good for those facing this sort of situation.
If you face foreign mortgage problems, get the best advice you can. If it goes wrong, then you will be pursued at some time. Do not ignore the issues, seek out professional help to know your options.
Contact our team today to find out your options. You can call us on 0333 363 6442 or email us at [email protected]