Until recently, banks made it a condition for accepting a mortgage that the client contracted a series of products linked to the loan. Even if this practice is already prohibited by law, If that
it is common for banks to offer better conditions if linked products are contracted, an alternative that can have a high cost and that must be carefully analyzed.
The contracting of home insurance, life insurance and other banking products were for years the norm when it came to
take out a mortgage. Since the entry into force of the Law 5/2019, of March 15, regulator of real estate loan contracts, banks are prohibited from making their approval conditional on the contracting of other products.
It is common, however, for entities to offer mortgages at a lower interest if the condition of contracting some of their products is met, a practice that is allowed by law as long as the consumer is offered the option of not subscribing to them, as well as the information necessary to understand the cost that their contracting entails or not.
What the bank is allowed to do is require the person who is mortgaging a minimum coverage home insurance, which does not have to be contracted with the bank itself, as well as a bank account in the entity to which to send the receipts. Therefore, with these two exceptions, in no other case can the bank condition the approval of the mortgage on the fact that other types of products are contracted or not.
A higher cost than the market
The number of linked products that the bank requires to contract to improve loan conditions varies from one mortgage to another, from a couple of them to around a dozen, including home or life insurance, pension plans, credit cards or insurance plans.
Linked products can come to represent a high cost for the buyer, not only because of the price of these products, but also because some of them carry other expenses and maintenance commissions. For this reason It is convenient to analyze if the contracting of these products compensates the improvement of the conditions that is received in exchange. In the case of home insurance required by the entity, the most common is that a better price is obtained from an insurer outside the bank.
If you opt for the home insurance offered by the bank andIt is advisable not to include its amount within the mortgage itself, although this allows paying it month by month, since the insurance interest will also accrue.
Negotiate interest and linked products
As with the rest of the mortgage conditions, the linked products offered by the bank are also negotiable, especially if you have a good job and financial profile. In fact, if the client has a profile that interests the bank, it is possible that they will obtain an interest rate that does not make it necessary to contract linked products to improve the offer.
The current high competition between entities it makes the negotiation of conditions with the bank more and more common. There are even specific low-interest mortgages targeting clients with a certain income volume.
To increase the chances of successful negotiations with the bank It is advisable to provide all the documentation that proves job stability, a good financial situation and an optimal credit history. In this sense, it is convenient to justify that you have a permanent contract and a good payroll, or in the absence of a good income as a self-employed person with future prospects, that you have savings and that you have no other credits or debts.
When preparing the negotiation with the bank it is advisable to be clear about what objectives you want to achieve: what type of interest are you willing to assume on the loan, or what other conditions of the mortgage are acceptable and which are not.
In any case, it is always advisable compare between the mortgage loans of various entities in search of the one that represents greater savings and more advantageous conditions; and even these offers from other banks can be useful when negotiating with entities.