In November 2022, the Law to help vulnerable mortgage debtors came into force (Royal Decree-Law 19/2022). The objective of this rule was to exempt, during its validity period, the payment of commissions when the client has decided to change their mortgage to a fixed rate or makes total or partial repayments of a loan at a variable rate after the increase in interest rates by the Bank. European Central to try to moderate inflation and, as a consequence, the escalation of prices.
Furthermore, although its purpose was to “relieve the burden of families with the most financial difficulties”, any mortgage debtor may request the application of this measure, even though their financial situation is not vulnerable. Initially, it was planned that this law would be in force until December 31, 2023. With the arrival of the new year, it has been decided to extend the period to change your mortgage from a variable rate to a fixed rate or make a full early repayment throughout 2024. or partial without paying commissions.
Furthermore, as detailed by the Bank of Spain, beyond prolonging this measure, a novelty will also be incorporated. And this year the exemption from commissions will also be extended to changes to mixed-rate mortgages, with a first fixed tranche of at least three years.
As explained on the 'Bank Client' portal, “if during the first three years of the life of the loan a novation or subrogation of a creditor is carried out, which implies the change from a variable rate to a fixed rate or with a first fixed tranche of at least three years, the compensation or commission for reimbursement or early amortization may not be greater than the financial loss that the entity may suffer.
In any case, there is a limit of 0.05% of the capital repaid early. They add that if the novation does not entail an early amortization of capital, the bank will not be able to collect compensation for this concept.
Once the first three years of the life of the loan have elapsed, the entity will not be able to charge any compensation or commission in the event of novation of the applicable type or subrogation of the creditor in which the application is agreed, from then on and for the rest of the life. of the loan, with a fixed interest rate or with a fixed first tranche of at least 3 years.
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