What expenses that do not appear in the mortgage contract can the bank claim from us? | Mortgage Loans
“The entities must ensure the integrity of the contracts they sign with their clients so that they contemplate and regulate all possible vicissitudes that may arise throughout each relationship.”
In theory, before signing the contract of a mortgage, the bank has the obligation to have written down all the conditions to which the mortgaged person will be subject during the following decades so that he can sign the contract knowing well what to expect.
In practice, the client may encounter more than one surprise, specifically, with payments that the contract had not established a priori.
Let’s see what they are, in order of appearance:
- Commission on payment methods. Upon signing, the bank will charge us for the issuance of the bank check, the physical proof that we have received the loan for the amount agreed with the bank. Until recently, the operation was settled with about 50 euros but in recent weeks we have heard about clients from whom the bank has asked for figures between 300 and 900 euros.
- Cost of linked products. As soon as we pay the first installment, we will also have to start paying the cost of the products associated with the mortgage (insurance, pension plans …). The mortgage contract must explain which of these products are necessarily associated with the firm, especially in the case of subsidized mortgages, in order to comply with the provisions of the Order of the Ministry of the Presidency, of May 5, 1994, on the transparency of the financial conditions of mortgage loans. What is not usually seen in many contracts is the price at which we are hiring these insurances, how long they cover or for how long we will have to pay them.
- Commission for novation. If at any time we want to change the terms of the loan, the bank is likely to charge us this commission. It does not appear in almost any contract because it is considered by default that it is 1 %. In the words of the Bank of Spain: “ in mortgage loans at variable interest rates, when the modification only refers to the extension of the loan term, the commission is limited to 0.1% of the outstanding capital amount.” Summarizing, we will pay 1,000 euros for every 100,000 outstanding as long as we only want to extend the repayment term. From this, it follows, in the absence of more information, that if we want a reduction in the interest rate, a capital increase or anything else, the commission could be any imposed by the bank at the last moment.
- Commission for the preparation of the documentation for mortgage cancellation. And when finally! We have completely paid off the debt with the bank, we will need the paper that proves that the debt has been canceled. For this procedure, the bank will charge us a commission that, not only does not appear in the contract but there is no legal price limit for it. There have been cases ranging from 50 to 500 euros. The Bank of Spain says in this regard: “We must remember that customers can carry out the necessary procedures for the registration of their mortgage on their own, so this commission, as soon as it pays for an optional service, is not normally included in the mortgage loan deeds. ”
But it also assumes that: “it is essential, so that the payment of the commission that pays it can be considered appropriate, that the client gives his prior consent not only to the entity performing this service, but to be charged the fees charged and informed by this concept”, that is to say, that the client must (1) have been informed and (2) have shown their consent to the price.
tips so that the ‘gaps’ of the mortgage contract do not come out expensive:
- Before signing, ask for a breakdown of the opening costs and a forecast of the commission on payment methods.
- Ask the bank for all the details about the mortgage-related products that we are going to hire: how many are they, what are they, how much they cost, what period they cover, how the payments will be made (monthly, semiannually, in a single funded premium …) and for how long We will have to pay them time.
- Ask the bank to express in writing what will be the novation commission applicable to our mortgage, already from the binding offer prior to the contract and, of course, also in this one.
- Also, ask the entity what will be the registration cancellation fee that will be applied to us. Also regarding this cancellation, we must know that the bank cannot charge us any commission for the notary’s displacement nor for informing us that the procedure has already been carried out.
According to the Bank of Spain
If the rules of transparency of the operations and protection of the clientele are not met, “ good practices require that, at the time of the absence of a precise contractual agreement, the entities must try to reach an agreement with their clients so that they give their consent to any of the possible forms of action in those cases. ” And also remember that: “ Article 1288 of the Civil Code establishes that the interpretation of the dark [not transparent] clauses of a contract it should not favor the part that caused the darkness. ”
Therefore, with the law in one hand and the recommendations of the Bank of Spain on the other, we can say that all payments that are not included in the contract are subject to legal appeal or, at least, to be negotiated with the bank, in spite of which it will always be better to be safe than sorry.