British ex-pats flee Spain as economy teeters

For many Brits dreaming of a new life in the sun, Spain was the ideal place to make a new home for themselves.

However, as Spain's economy teeters amid plunging house prices and safety fears over Spanish banks, thousands of British ex-pats and second-home owners are now fleeing the country.

The 2008 international banking crisis hit ex-pats hard as the pound plunged below the euro and Brits suddenly found their UK savings and pensions bought them a third less.

With thousands of people behind with their mortgages and house prices down by 70 per cent, the Spanish property market is in dire straits.

To make matters worse, expats who are behind on their mortgage repayments are key targets for repossession as they are seen by local banks as a higher risk than Spanish homeowners.

Now foreign exchange firms are being inundated with calls from Britons in Spain, with Moneycorp claiming it has seen the number of people changing euros to sterling double in the last month.

Despite this, estate agents have reported a surge in interest from Brits hoping to snap up a holiday home bargain in Spain.

Experts have warned anyone considering buying in Spain must seek advice from a reputable estate agent, a good mortgage broker and a local lawyer – especially as some buyers can be caught out if they buy a property that never had planning permission in the first place.

• Are you a Black Country ex-pat in Spain? Has your dream of a new life in the sun come true, or are you having to pack up and return because of the eurozone financial crisis? Get in touch with us at newsdesk@expressandstar.co.uk