Since June 17, 2019, the mortgage firm has changed significantly for the consumer when Law 5/2019, of March 15, regulating real estate credit agreements, began to apply.
The new Mortgage Law benefits the consumer in such an important product that conditions for many the rest of all the financial decisions, in all the contracting phases, from the loan conditions, including the obligation of contracting products in a cross way to subsidize the interest rate, to, as we will see in this article, the entire phase of prior information in which the conditions of the mortgage are determined.
How it protects us before signing : new Mortgage Law
Having the right information to know in advance what conditions the mortgage has and thus being able to compare and negotiate with the financial institution is vital. Now, with the new Mortgage Law, in addition to the general contracting conditions they have, they appear on the web pages of the lender, the pre-contractual information has to be delivered in durable support to potential clients.
In addition, after studying the feasibility of the mortgage, the client must receive personalized information on the mortgage loan that is offered through the Standardized Information Sheet (FEIN) . This information is considered a binding offer. Therefore, between the delivery of this form and the signature of the mortgage must pass at least 10 days.
A Standardized Warning Card (FiAE) must also be submitted, with information on the most relevant clauses and elements of the contract, such as the mortgage index that is applied in variable mortgages or that occurs in case of early maturity.
Risk assessment is of great importance
In this process prior to the concession, risk assessment is of great importance. The new Mortgage Law obliges lenders to assess the solvency of both borrowers and guarantors. You cannot approve a mortgage transaction only with the guarantee of the property. Therefore, not only the Risk Information Center of the Honest Bank (CIRBE) is consulted , but also private default files. If after the evaluation the mortgage is denied, the reason for this refusal must be justified.
Most important role of the notary
Once the mortgage has been granted, you must go through the notary. The figure of this public notary also becomes more important. Thus, it is obliged that both the mortgage borrower and the possible guarantors go to the notary twice before signing, when until now they only attended the moment before it.
The first visit is made at least ten days before the date of signature. In this view the notary will inform the signatories about all the clauses of the mortgage, drawing up notarial deed of this visit.
Thus, sufficient room is given to clarify, and even change, the conditions of the mortgage at the time of signing and thus avoid subsequent surprises.