NEW MORTGAGE LAW: 10 questions

The new Mortgage Law – Law Regulating Real .Estate Credit Contracts – came into force on June 16 with the obligation for banks to assume the notary and registration expenses , which in theory represents more savings than Appreciable for clients who are going to sign a mortgage. However, the Bank of Spain has already warned of the negative effect it could have: the tightening of access to mortgage credit. A controversial law Law  of March  regulating Real Estate Credit Contracts (in force since June 16, 2019), has transposed Directive 20/EU of the European Parliament and of the Council.

A controversial law

Legislation with the purpose of providing transparency and facilitating the understanding of each of the clauses that appear in the contract in order to restore the balance between the parties, which implies modifications that may hinder subsequent customer claims. that they will no longer Mexico Number Data be able to allege lack of transparency before the judge. However, expectations were all placed on the improvements that it was going to bring for the protection of the citizen, which included the prohibition of floor clauses, the reduction of late payment interests, the extension of the code of good practices or new alternatives to proceed with evictions.

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Three years late

Three years late The truth is that the rule has arrived three years late and is the result of the transposition of the aforementioned community directive. Brussels already threatene in 2017 with a sanction to Spain of 105,000 euros Mexico Phone Number List per day for the delay in approving the mortgage law. Law that should have been passe on March 21, 2016. At the end of  April, the Government carrie out the Royal Decree that we now see endorse by the European Commission, which has been aske to withdraw the demand for up to 80 million euros filed against Spain before the Court of Justice of the European Union (CJEU) for the delay.

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