Keys of the new mortgage law
The new mortgage law is already approved definitely 2007. Although the holders of the press center on the biggest flexibility and transparence, and on the commissions reduction, this new norm constitutes one significant reform of the mortgage law that is convenient to detach in detail.
To start, it is important to notice that the new mortgage law will only affect to those mortgages that are constituted after the coming into effect of the regulation, which will be one day after his publication in the official Bulletin of the State, which is waited by the beginning of this December.
Compensation for waiver. The commission for early cancellation or substitution now happens to call ‘compensation for waiver’, and the maximum commission diminishes from 1 % to 0,5 % on the hanging capital in the mortgages of variable interest and to 0,25 % if the mortgage loan has more than five years.
In the mortgages of fixed interest the alone percentage of 0,5 % will be able to increase when the early cancellation or substitution generates a profit for the one that receives the loan and a loss for the entity, that is to say, if the interest rates are below the type in the one that hired the mortgage. On the contrary, the entity will not be able to receive this compensation if the early cancellation or substitution generates a profit and a consequent loss for the client, that is to say, in a context of increase of interest rates.
Loans novation. More negotiation capacity for the client. When let's want to improve our mortgage, the changes will be considered to be a mere modification and not extinction of the juridical relation and constitution and will stop needing, therefore, the cancellation of the initial mortgage and the constitution of a piece of news, with the corresponding expenses saving in valuations and tariffs that this supposes.
The modifications to which sound refers: the enlargement or reduction of capital, the service or modification of the personal guarantees, the alteration of the conditions of the initially agreed or current interest rate; the alteration of the term, of the method or system of amortization and of any other financial conditions of the loan.
Expenses. There are exempted the expenses of formalization of the mortgages. For an average mortgage for 120.000 euros to 20 years, the record expenses lower from 240 to 42 euros and the notarial expenses reduce from 111 to 25 euros.
Inverse mortgage. The new norm establishes the juridical frame that regulates this product. The persons older than 65 years and dependent persons will be able to constitute an inverse mortgage on a housing different from the habitual one, that is to say, on the second residence. Of course, the fiscal advantages will be only for those who do it on his habitual housing.
Maxima mortgage or floating. The small businessmen will be able to be endorsed if the same. With the guarantee the housing or the place, and under the only mortgage, obtains a species of line of long-term credit to cover the present and future debts related to the business.
Transparence. The reform qualifies the Minister of Economy and Treasury to approve an order of transparence and protection of the client in order to extend the clarity of the information of all the aspects of the process of hiring of a mortgage.
Independence of the assessors. There is guaranteed the independence of the societies of appraisal. There is gathered a catalog of very serious, serious and light infractions, with his corresponding sanctions and it is contemplated that it is possible to disqualify of definitive form the societies of appraisal who “have been missing to the veracity” in his evaluations of the real estate that are used like guarantee of the mortgage loans.