The new and awaited Mortgage Law is already here and comes full of important novelties.
This law brings a stronger and enforced protection to the mortgaged ones as at the same time will mean a stronger security for the financial entities, among other measures.
Changes will affect mortgage firms from 17th June 2019.
¿Which are the most important changes that we should be aware of? So, here they are;
New Mortgage Law: developments and novelties more important in a mortgage law in Barcelona. All changes in this Law are estimated to generate savings up to 2.500€ in each transaction to the ones interested in this kind of credits.
These are the main novelties:
Opening commission in the new mortgage law: although this kind of commission is not likely to be deleted, entities will have to earn it just once and the quantity will have to be included and detailed into the processing expenses.
Anticipated expiration and interests: one of the new developments, already adopted in other countries of the European Union (such as Germany or Italy) is the the change of dividing the loan into two halves; if a non-payment is to be produced and the foreclosure has to be activated, it should be noted that if it is produced in the first half of the loan, the default will have to be equal to the 3% of the whole loan or 12 fees.
If the default is produced during the second half, it will have to be up to 7% of the capital or 15 fees.
The Notary’s job in a mortgage firm in Barcelona: a day before of a mortgage firm it has to be settled the appointment with this professional. As well, it is mandatory that the holder of the guarantors has to assist as well (whom will have to take a test and get free advice, counseling).
Either this expense as the management one, will be paid by the financial entity.
Pre-existing contracts: the law will not be applied to the former mortgage subscribed in advanced to this regulation, except if there is an advanced expiration date in case of non-payment, default.
Furthermore, it must be taken into account, that the execution procedures in force before this new regulation, will not be under the protection of it.
“Floor Clause”, forbidden: explicitly this law forbids the application of minimum interests in the mortgage which have variable interests rates. Likewise, it is stated that the remunerate interest can not be negative.
Documented legal act taxes: to this effect, the bank will continue to pay all costs and expenses associated with the mortgage granting loans, expect the ones related to property valuations.
These are the main novelties of the new Mortgage Law. That is why if you are thinking in buying a property in Barcelona, you should get updated and informed of pertinent developments.
You should know you can count on us in order to help you with the property searching as well as taking the right choice and decision to get the best mortgage, so please, call us if you need it.
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