The law that was reducing the costs of the mortgages will come into force at the beginning of 2007
24.10.2006
The new law that will regulate the mortgages will come into force in the first trimester of 2007. The new regulation will reduce the notarial costs and register them and it will cut the maximum commission away in case of early cancellation of this type of loans.
The new regulation will reduce the notarial costs and register to them that he supposes for the users the substitution, modification and change of a mortgage. In case of an "average" mortgage the reduction will be concerning 40 %, as has pointed out the secretary of the State of Economy, David Vegara.
Cancellation
The new law also will cut away to 0,5 % the maximum commission that the financial institutions can apply in case of early cancellation of a mortgage loan to variable guy, which at present is 1 %.
For the mortgages, the entities will be able only to receive from fixed guy the commission of cancellation concentrated on the contract when the interest rates are lower than those who were in force when the mortgage was signed. In the opposite case, he told, the maximum commission will be 0,5 %.
Inverse mortgage
The reform of the Mortgage Law also will regulate the figure of the ‘inverse mortgage’, a product that allows to the persons older than 65 years or dependent persons to be owners of a housing to receive a revenue with the guarantee of the value of the same one.
The regulation establishes that although there becomes exhausted the revenue that contributes the financial institution according to the value of appraisal of the housing, the holder of the same one could keep on living in his house.
To the death of the acquirer, the heirs will have two possibilities, or that the entity executes the mortgage, this is, that the heirs bandage the housing, or that pay the debt that has generated the inverse mortgage and recover the building. The only guarantee that will have the bank to recover the money is the mortgage of the housing, but it will never be able to go against any other good of the heirs.
Vegara has told that the Government chases with this law “to improve the transparence and the information that the consumers receive” at the time of asking for a mortgage, what does not mean that at present “it is deficient”.
Source: Expansion.com
Banco Pastor puts on the market a mortgage to fixed type for one year and variable the rest.
18.10.2006
Banco Pastor has thrown a mortgage of fixed type during the first year and variable based on Euribor during the rest.
Depending on the link of the client to the entity, the offer reaches up to an interest rate of 3,95 per cent the first year and for the rest of periods up to the Euribor + 0,45 per cent
Route | EP
We have right to negotiate to improve any mortgage
16.10.2006
As has told the attorney of the juridical services of the Users' Association of Banks and Savings banks, Almudena Velázquez, the users have right to try to improve the conditions of the contracted mortgages.
Before a situation of this type the banks and boxes are usually ready to yield in some points in exchange for not losing the client linked to the mortgage. For example in checking accounts or insurances or cards.
The Ausbanc attorney has indicated that the only services linked to a loan are the checking account and the insurance against fires, nothing more.
As the first action, the users can request the suppression of the clause of rounding to the rise applied in many boxes and banks. Also, it is possible to try to agree on a reduction of the commissions during the validity of the loan and apmliar the pay-off period.
The financial institution arranges 15 calendar days to be equal or exceptionally to improve, determine it of another signature for the same mortgage. If it does not yield, the user has freedom to replace with his loan with the one who offers him better options.
Route | The digital voice
Activobank puts on the market the cheapest mortgage
13.10.2006
The bank online of the Group Sabadell, it has improved the conditions of his mortgage offer to turn it in the cheapest existing on the mortgage market. Activobank has lowered the differential of his Variable Active Mortgage from 0,35 points up to 0,3 points, with the client TAE would have to pay in these moments a monthly interest of 4,35 %.
Price war in the mortgages
The branch online of the Sabadell joins like that - the price war in mortgage credits declared between the banks that they operate for Internet. Till now, the entity that was provided with the most competitive product was ING Direct, which applies to his Orange Mortgage an interest rate of the euribor more 0,33 points. His most direct competitors, like Openbank (of the group Santander), and-Bankinter, Bancopopular - e or Ibanesto, they have loans for the housing buy with a differential of between 0,34 and 0,36 points.
The Variable Active Mortgage of Activobank does not have opening commission not of entire or partial cancellation. The pay-off period of this mortgage can come to 34 years and 11 months, and the maximum amount that it covers reaches up to 80 % of the value of appraisal for the first housing and 70 % in case of the second residence.
Route | Five days
The “Stipendiary Mortgage” of low Barclays to 0,39 % the differential
09.10.2006
Barclays has decided to reduce of 0,45 to 0,39 per cent the differential of his Stipendiary Mortgage, which turns this way - into ‘the cheapest’ of those who can be hired in an office.
With these measurements Barclays enough approaches the differential that the entities are offering across Internet, with ING the head, which recently limited the differential of his Orange Mortgage of 0,45 to 0,33 per cent.
As told the person in charge of marketing of the entity, Pedro Lachondo, the target of this campaign is to raise the valuation of clients' reception of 11 to 13 per cent, what translated for numbers it means, ‘approximately 4.000 a month’.
Route | Terra
Ibercaja will manage the Young Mortgage of Valencia
04.10.2006
The Young Mortgage offers better conditions to those of the market to that young people who want to acquire a housing in property in the municipal term of Valencia.
The maximum amount is 300.000 euros and the term, up to 40 years. With regard to the interests, the first six months the euribor is paid only. Since then, and on a value of minor appraisal of 80 per cent, euribor + 0,37 if the credit is for less than 30 years and euribor +0,39 per cent if it is for more of this period. Also, when it is granted by more than 80 per cent of the value of appraisal, the price of the money will be to the euribor + 0,42 per cent.
In the hiring, there is no opening commission not of cancellation, and yes - other services according to the link of the client with the entity. If the young one hires certain Ibercaja services, this one assumes the appraisal expenses.
Between other innovations, also he emphasizes the payment of increasing quotas, which allows to adapt them to the needs and economic situation of the young people who sign them, not amortize up to 24 months or postpone quotas from the fourth year.
Route | Current Panorama
The Bank of Valencia throws a mortgage that can return in its entirety in 35 years
02.10.2006
The Bank of Valencia has put on the market a mortgage loan with possibility of returning it in its entirety in 35 years. The mortgage is designed so that the young people with age equal or lower than 35 years, could gain access to a better housing, since only interests are paid during 35 years, that is to say during the life of the operation, and is to the expiration when he returns himself the capital.
This form of mortgage allows the young people not to pay cancellation commissions, if every year they amortize a maximum of 10 % of the whole of the loan.
Also, it is possible to go so far as to finance up to 100 % of the value of appraisal of the housing. With it, “there is offered access to housings of more quality, amortization freedom as one progresses professionally and to be able to amortize with periodic quotas in the moment that are wished - like the classic loans - as for the client be convenient for him”, according to sources of the entity.
Route | EP
