18 March 2019 – Expansión
The new Mortgage Act was published in the BOE on Saturday and it will enter into force in three months time, on 17 June 2019.
The legislation reflects an EU directive, which seeks to increase the transparency of mortgage contracts to try to reduce the high rates of litigation in the banking system.
It means that Spanish legislation will, for the first time, require the banks to bear all of the costs associated with the formalisation of a mortgage, except for those relating to the appraisal/survey.
The Bank of Spain agrees that the new law should reduce the number of litigation cases but voiced concerns that it will also make new loans more expensive.
Original story: Expansión
Translation/Summary: Carmel Drake