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The New Mortgage Credit Law

New Mortgage Law

On June 16th, 2019, Law 5/2019, of March 15th, regulating real estate credit contracts (hereinafter the «New Mortgage Law») came into force, which includes a series of new features that affect both customers and financial institutions offering loans with mortgage guarantees.

The first objective pursued by the New Mortgage Law is to establish measures for the protection of individual consumers who are debtors, guarantors or guarantors of loans secured by mortgage or other real right of guarantee on real estate. To this end, the New Mortgage Law establishes the following objectives:

 To enhance legal certainty and transparency
 To facilitate and guarantee the understanding of contracts and their clauses.
 To regulate and establish a fair balance between the parties

In addition, it is relevant to take into account that the New Mortgage Law aims to transpose into national law the European Union regulations on this matter, reflected in Directive 2014/17/EU of the European Parliament and of the Council, of February 4th, 2014.

7 questions about the new mortgage law

Questions and Consequences of the New Mortgage Law

There is a lot of confusion with the new Law regulating Real Estate Credit Contracts known as the «mortgage law». For this reason, we offer you 7 basic questions to take into account before this new change that affects banks and clients.

Does the new mortgage law affect what I am already paying?

This new law already in force will apply for all contracts signed from June 16, 2019. For customers who signed at an earlier date, they will not be able to benefit from many of the aspects to take into account. Although some of them will be retroactive.

Extension of the foreclosure period in case of non-payment.
Opportunity to change bank without the current entity being able to prevent it.
Change of a variable loan to a fixed rate with a discount in the commission.

Keys to security in electronic payments

What is the PSD2 standard? Es posible que durante los últimos días hayas recibido alguna comunicación de tu entidad bancaria en relación con la entrada en vigor de la nueva Directiva (UE) 2015/2366 sobre Servicios de Pago, también denominada PSD2 (Payment Services Directive 2). Esta Directiva deroga la normativa europea anterior, la Directiva […]

IRPH, can I claim it?

What is the IRPH?

The mortgage loan reference index (IRPH) is an interest rate that is calculated as a weighted average of the interest rates of loans with mortgage guarantee, with a term equal to or greater than 3 years, for the acquisition of free housing.

For its calculation it takes into account the APR, so it includes commissions, which means that the calculation of the new indexes (issued by the Bank of Spain), are multiplied exponentially.