This 2017 the Spanish Government has decided to make a reform in the congress to develop the new Mortgage Credit Law Project, better known as the New Mortgage Law. These changes are expected to be implemented during the first quarter of 2018.
Changes in the New Mortgage Law
The greatest advantages that customers will obtain, came through the European committee, which together with the Spanish government seeks to ensure the transparency of mortgage contracts, reduce the fees paid by customers and to implement the vision of the European committee on matters of mortgage and real estate to the legal order of Spain.
The most important thing is that they want to avoid the numerous lawsuits against banking that had increased over the last few years. It seeks more homogeneity with respect to mortgage contracts and avoids abusive contractual bank clauses.
With respect to the changes implemented, the following were proposed:
• Will be mandatory for now on, that the client presents himself to a notary before signing an agreement to guarantee that the loan acquired is in accordance with the new law.
• Alimitation will be implemented on the fees that banks apply, for now on.
• And reach notable agreements and with people has have delays with its payments.
One of the most important things is that some of the changes will affect all current mortgages; while other modifications will only apply to contracts signed after the reform and will be announced and signed after the Official State Gazette publishes the new standard.
In any case, the important thing is that the reform of the law has a final goal that is to offer transparency to consumers and legal security to banks and so well adapt to the regulations of the European Commission.