Brussels requires Spanish banks to eliminate the commission for amortised mortgages from the sixth year.
Spanish banks will have to remove the fee for both partial and full amortisations from the sixth year of the signing of the mortgage. This is provided for in a working on the approval of a law that provides that in case of amortization in the first three years of the loan, the bank will charge a fee of up to 0.50% of the capital and if in the first five years, this commission goes down to 0.25%.
The Ministry of Economy has brought to public consultation until 15 September, the draft Law on contracts of real estate credit, legislation which responds to Directive 2014/17 / EU of the European Parliament and of the Council of 4 February 2014 on credit agreements concluded with consumers for residential real estate. This European Directive has been incorporated already by half a dozen countries.
The mortgaging will have to notify the bank within a period not exceeding one month.
According to the newspaper Cinco Dias, current mortgage holders can also benefit from these changes as they apply retroactively.
Regarding the opening fee, it will be charged at once and shall cover the full costs of the study, processing or granting the loan.
In addition, the bill states that banks cannot link the granting of the mortgage to purchase products such as life insurance, home insurance, etc. However, it notes that the Bank of Spain may authorize these links whenever there is a clear benefit to the mortgaged (cheapening of funding). They will also be permitted provided that this serves as collateral for the bank loan.
Other new feature is that the legislation will allow the mortgaged the right to change the currency of your loan and regulate advisory functions. It also sets limits on the remuneration policy of the employees of the bank or any other lender, which means that there can be no incentives for the number of mortgages sold.
The objective of the legislation is to increase awareness by lenders and even force them to have specific training required by European Directive from 2019.