This new mortgage law, intended to be a transposition of the Mortgage Directive, is expected to be approved by the Executive at the end of June of this year 2017.
The following are the keys to the European Mortgage Directive:
The European standard includes a series of rights that assist the consumer in two phases:
- Before you buy a home:
- Pre-contractual information (obligation to provide a standard European information booklet, 'FEIN').
- Reflection period of 7 days or right of withdrawal before signing the mortgage.
- Prohibition of linked selling practices (except when dealing with an insurance or savings product).
- Granting of responsible loans, through the prior study of the financial solvency of the consumer, the establishment of reliable appraisal standards and the skills required of the staff at the service of credit institutions.
- After buying a home:
- Early repayment right (flexibility in payment).
- Fair tolerance of credit institutions (alternative formulas to execution).
- Dation in payment by express agreement by the parties (in our country, we already have a precedent that guarantees the cancellation of the mortgage debt when delivering the house: judgment of the Jdo Mercantil nº 10 of Barcelona of 7-11-16).
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