The commission for the early amortization of the mortgage will be higher with fixed-rate loans

The commission for the early amortization of the mortgage will be higher with fixed-rate loans


The New Mortgage Law will contemplate a repayment commission for a higher early repayment in the case of fixed-rate contracts than in variable-rate contracts, in order to give more stability to the financial system. The presentation of the Mortgage Law, which plans to finalize its work on Tuesday at the Congress Economics Commission, will include a commission for early repayment that will protect banks from the higher cost they have to assume when making a fixed-rate mortgage. And is that in the case of mortgage contracts with fixed rates, the financial institution must guarantee the coverage of that interest (which is currently higher than the variable) as well as long-term financing.

The PSOE, the PP and Citizens agree that the mortgaged client pay a higher commission for reimbursement before a fixed-rate contract than a variable-rate contract and advocate that the former be encouraged to avoid uncertainties throughout the life of the mortgage loan. "In order for entities to offer fixed-rate operations, there must be a structure that guarantees that entities can offer it, since the reimbursement has a cost and if we do not reflect it, the bank will not go for this type of contract, "said the spokesman of the PSOE in the commission, Gonzalo Palacín.

Palacín has said that if you have a fixed rate for the life of the loan will give security to both parties, while the deputy of PP MP Miguel Angel Paniagua has said that the commission on fixed-rate operations must be greater than the variables as a compensation mechanism for entities.

Also, the deputy of Citizens Rodrigo Gomez has been in favor of promoting mortgages at a fixed rate because for the consumer "it is easier to know what you are going to pay and make your income and expenses forecasts in your life" before a mortgage contract that is usually long.

He has warned that if there is no a "balance" between the bank and the client and there are no reimbursement commissions, the entity "will eventually raise its interest rate to ensure that it does not suffer harm".

From Unidos Podemos, Rafael Mayoral has warned that a fixed rate mortgage could be in principle "easier to understand, but everything depends on the conditions" and has insisted that the bank should not charge any commission if it does not offer a service in exchange. "To amortize a loan what it does is to give security to the legal traffic and to the financial system and to put commissions does not help to amortize but it discourages", he has pointed out.

Foreclosure clause

The paper discusses the retroactivity or otherwise of the foreclosure clause, which could affect dozens of evictions that are currently suspended as a result of several European judgments.

The PSOE proposes that the legislative text clarifies in writing that the new law will not lead to the reactivation of these embargoes and emphasizes that there must be legal security.

However, the new Real Estate Credit Law, which is consequence of the transposition of a European directive, will not enter into force in 2018, since the processing times are very tight and although it could be debated in the Plenary Session in December, it would not be processed in the Senate until February.

Likewise, the new Law will also contemplate that the Rural Savings Banks and the Credit Cooperatives, exempt from paying the Tax on Documented Legal Acts, must pay it as the bank will do in the event that they grant a loan.

This is an amendment introduced by Ciudadanos, which has been supported by a majority, and which states that they will only be exempt from paying the tax when this type of entity purchases a property or land, as is also exempt from the so-called bad bank, the SAREB .


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