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Mortgage
Posted:
Thu Jun 24, 2021 10:49 amby Steve2
I have a mortgage on my property in Catral, I was very surprised to receive an offer from my mortgage lender offering a discount for early settlement, has anyone else received a similar offer from their mortgage lender/bank?
Re: Mortgage
Posted:
Thu Jun 24, 2021 11:57 amby jpeg
Maybe because of the new rules in the Mortgage Law
3. Cheaper early repayment
The early repayment of a mortgage will be made cheaper and can only be charged for if the bank will make a loss. The limits will be different depending on the type of mortgage.
If the mortgage is variable rate, the maximum charge will be one of two options:
0.25% only during the first three years of the contract.
0.15% only during the first five years of the term of the mortgage.
If the mortgage is fixed rate, the charges can be up to:
2% during the first 10 years.
1.5% during the rest of the term.
The banks will no longer be able to delay the early repayment of a mortgage, as there will be a legal framework in place to determine how this should happen and the maximum amount of time it can take from when the client requests it. The maximum notification time a bank can demand will be one month, following which the banks will have three working days to assess the demand and provide the relevant information.
Re: Mortgage
Posted:
Sat Jun 26, 2021 11:48 amby Steve2
Thank you for your reply and the information. I will be contacting my Spanish lawyer to look into this early settlement offer, thank you, Steve.