Abusive mortgage cost in Spain
In Spain it was habitual for the banks, in the case of a purchase with a mortgage, to let the customer pay the cost for the mortgage, cost like mortgage management fees, notary cost of the mortgage deeds, mortgage stamp duties and registry cost of the mortgage deeds. Abusive mortgage cost.
So if you have a Spanish mortgage and you have paid the set up cost for the mortgage, you might be entitle to get back most of these cost. This is thanks the recent the ruling of Supreme Court Judgement (705/15) in which they confirm the clause in where the banks transfer the mortgage cost to the customer is abusive.
Cost like the Notary Fees, Land registry, Management fees, and, in some cases, Stamp duties which could represent between 1,5 and 3% of the capital of the mortgage, were imposed by most of the Spanish banks of the binding offer.
Now the Supreme Court declares that the banks are liable for these cost, as the are the main beneficiary of the mortgage registration.
The registration of the mortgage is a guarantee for the banks, but these cost were transferred to the customers taking the mortgage in an abusive way.
At VM Solicitors, we advise, in first term an approach to the bank of the mortgage, trough the local branch or the banks customers service department. If this approach does not work, we recommend to take legal action against the bank.
Also very important in this matter is to never sign a direct agreement with the bank in this matter without a Lawyers consultation, as in most cases this is not in your benefit!
Do you want to know more about abusive mortgage cost in Spain or to know how we can help you? Please contact us.