The New Mortgage Law Comes into Force

The new mortgage law is in force from June 17.

The law obliges the Notary and the bank to explain the content of the mortgage contract days before the signature.

On another hand, and with regards the mortgage set up costs, by law the payments would be as follows:

– Notary fee. Is paid by the bank.
– Gestoría fee: Is paid by the bank.
– Stamp Duty tax .AJD: Is paid by the bank.
– Land Registry fee: Is paid by the bank
– Tasación: Is paid by the client who has the freedom in choosing the valuator.

For those who are still in the process of arranging a mortgage with the bank. They will not benefit from the new law if it can be proved that the client accepted the offer of the banks terms before this date. Others who have not accepted a binding offer, will be subject to the new law.

This law relates to mortgages set up from June 17. It opens the door to make claims against the bank, for the mortgage costs incurred from previous purchases.

Source:- citizensadvice.org.es