Economy.- Guindos defends today in the Congress its mortgage law against the alternative proposal of Unidos Podemos

The Minister of Economy, Industry, and Competitiveness, Luis de Guindos, defends this Thursday in the House of Congress his project of Real Estate Credit Law, which is submitted this week to its first parliamentary exam with its debate of totality, confronting the alternative text presented by Unidos Podemos.

The Government proposal extends the limit of the banks when executing a mortgage (now it can do it with three months of non-payment), facilitates the conversion of the loan with variable interest to fixed and obliges the entity to communicate in detail all kinds of clauses, such as floor clauses, and to ensure that the client, notary through, declares himself aware of its nature and behavior in different scenarios.

The regulation, which involves the transposition of the European directive on mortgage loans, had to have been approved before March 2016. Since this procedure has not been completed, Spain has opened an infringement procedure, although the Government hopes to approve the regulation before of the end of the process in order to avoid a possible fine.

Guindos already announced during the presentation of the initiative in November that the Government had enough support to overcome the different parliamentary procedures, the same ones that had made possible the approval of the 2017 Budgets: Citizens, PNV, UPN, Asturias Forum, Canary Coalition and New Canary Islands.


In any case, these votes should reject the proposal brought to the debate by Unidos Podemos, which, as they defend, is a “stricter” transposition of the directive on consumer protection. If the initiative of the left coalition adds more support than rejection, Congress would proceed to process this alternative text and reject that of the Government.

In this sense, Unidos Podemos demands a protection “not only formal”, but also material, demanding that there be a public body to control and supervise the signing of this type of contract, and point to the Bank of Spain to act as supervisor of “all the types of contracts that financial entities are going to market, to make sure they are not violating the rights of consumers. ”

The alternative proposal establishes the nullity of those that oblige consumers to forego their rights to be informed about any assignment of the loan and also allows to reimburse all or part of the loan without commissions or penalties, except for the financial loss in the first years, is justified and does not exceed certain percentages- payday loan consolidation.

Likewise, notaries and registrars are prohibited from authorizing and registering contracts or businesses with clauses contrary to norms or declared null by the Supreme Court and authorizes the autonomous communities to apply a deterrent sanctioning regime.


The Government’s proposal establishes new terms for the early expiration of a mortgage, limits interest on late payment – three times the current legal interest and will be applied to the outstanding principal – and facilitates the conversion of the mortgage loan in foreign currency to another currency , as well as the change of mortgage loan with variable interest to fixed interest.

Currently, banks can decree the early expiration of a loan and execute the mortgage from the third month of default, a threshold that the Government raises up to 2% of the loan, including interest, or nine installments during the first half of the contract, and 4% or twelve months in the second.

To change a mortgage loan with variable interest to a fixed one, the maximum commission for early repayment for a novation or change of entity in which a fixed rate is agreed will be 0.25% in the first three years, and thereafter it will disappear.

In the case of variable-rate mortgages, the commission for early repayment will be zero from the fifth (0.25% limit) or the third year of the effectiveness of the opponent (0.5%), depending on the agreement. As for fixed-rate loans, the early repayment fee will be 4% maximum in the first ten years and 3% thereafter.


On the other hand, the standard includes the possibility for both parties to voluntarily adhere to a standard contract in which the fundamental clauses of the contract are established, and obliges the entity to send seven days before signing the contract a file with the main characteristics of the contract, including floor clauses, with estimates in different scenarios of interest.

In these seven days, the consumer must go to the notary to answer the questions that he poses and where he will explain all the sensitive clauses, having to sign a record, free for the borrower, in which he will manifest knowledge of all the necessary information.