Hi

My parents in law live in Furteventura with a resident status and have a spanish mortgage for their house of about 100000 Euros. They also have savings which they have in a spanish bank on the island of ?70000 which they have kept in Sterling. They tell me that they are currently getting 5.7% return on their ?70000 savings (which to me seems very high) and are using the monthly income from these savings to pay for the mortgage. They have no other income except a pension of about ?88 week which is paid into an english bank account (Nat West). They also have about ?15000 here in the UK in the same account. They have asked that we arrange transfer of this to their savings account in Fuerteventura to allow them to get 5.7%

They have become nervous over the recent drop in the exchange rate and have asked for my advice.

These are the details that they have given me although I am unsure over their understanding of financial workings in Spain and UK

I would welcome any advice help etc anyone can give. Does this seem accurate and true?

Many Thanks

yes it going in a good way for some but the news was told it going to get bad again when the EBU dose it rate cut on the 14 coming

it sould go back to 91 - 95 again , coming for good mate in BDO Simpson Xavie

91-95?

cent to the pound 91-95   friday rate is 1.00 EUR = 0.881617 GBP wich still bad for any one on the uk pension . currently getting 5.7% return on their ?70000 savings, now that not bad i did see banks did offter rates but it was last sept , dont think you get any think like that now with EBU rate and interbankrate is coming down . uk banks were doing the same last sept and oct aswell seen on tv

they tell me that they were offered this, this week but I find that hard to believe. Do you get good rates like 5%+ on sterling investments in Spain

What rates are they likely to be offered?

If they have found around 5% NOW then bite the banks hand off - this rate was available October/November (I know because I got it) the minute the first big interest rate cut came I phoned the same bank and was told it was down to around 3% and it is probably even lower now! Check the internet!