Mortgages: since expenses to the types, like this will be with the new law

Published on July 25th 2017

The rules elude regulate who should pay the costs of notary and registration of the credit, if the bank or the consumer.

The norm will be approved as a project in the second half of the year. According to sources of the Ministry of Economy, there is no other "guaranteeing" European legislation, since the obligation to increase the consumer protection imposed by the European directive - this law is a transposition - added measures have been added.

Formalization expenses. The law will oblige the bank to break down in the contract the formalization expenses that the mortgage entails: notary, registration and tax Documented Legal Acts. However, it will not specify who should pay these associated costs, whether the bank or the future mortgaged. It leaves you negotiating the parties.

Related mortgages. It is forbidden that a financial entity obliges to contract with it a certain insurance to grant the mortgage, except for exceptional cases that the Bank of Spain will set. However, if it allows to reduce the type of interest applied depending on the hiring of different products, a practice very widespread in Spain. Of course, the entity must present two budgets, with and without the bonuses.

Change to fixed rate. To encourage mortgages at a fixed rate, the Government will eliminate the commission of early repayment as of the third year. The two above this surcharge will be limited to a maximum of 0.25% of the loan amount. In addition, the fees charged by notaries and registrars will be "minimized".

Source: Expansión