Balearic Islands 11 January 2018
The new Mortgage Law will come into effect in the first half of the year and contains a large variety of changes in favour of buyers. We present you the main changes for this year.
In order to improve transaction transparency, the bank must guarantee a free consultancy service to buyers in order to review the terms and conditions they are being offered by the bank. In addition, once informed, the consumer must consult the notary free of charge so that he/she can review all the documentation and ensure that the customer understands all of the terms and conditions.
Product flexibility and fewer fees
With respect to the products offered by the bank, there is no longer an obligation to sign up for associated products. Previously, banks could oblige you to sign up for products such as home insurance, payroll direct debits or credit cards. From now on, customers will have the freedom to sign up for these products with whomever they consider most appropriate.
In addition, according to the new law, termination fees will be reduced, as well as fees for late payment. The cost of changing the mortgage from fixed to variable or vice versa will be zero after 3 years and it is already the case that you do not need to pay to return the money before time after 5 years.