Changes to terms and conditions of mortgage

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24 Jun 2010 00:00 by chrissmith Star rating. 158 posts Send private message

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We are due to complete tomorrow and the bank providing the mortgage has just informed us that the rate applicable for the first year has been increased as they don't want to lend to anybody at the moment and hope that this will deter applicants that have already been approved. I understand that Spain's banks are not regulated as they are in UK but surely their mortgage offer has some kind of legal obligation? I wonder if anyone has had experience of such an instance and whether there are any tips to try and persuade the bank not renege on their original offer.

The option of pulling out and looking for an alternative offer is complicated by the VAT increase next week so think they have us by the short and curlys but if anyone has any advice that would be greatrly appreciated. Would my solicitor (who I can't get hold of as usual) be able to exert presuure?





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24 Jun 2010 13:01 by redsam79 Star rating in Los Pacos, Costa del.... 192 posts Send private message

Hi Chris, I would be quite sure if you read the small print in your mortgage offer the bank can alter the terms of the offer or indeed withdraw it all together. You are right they have you by the short and curlys, so if you can live with the new offer I suggest don't make waves and take it. Sorry to be of no real help but I think you will find you have no alternative.



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24 Jun 2010 15:32 by joanmalaga Star rating in Costa del Sol. 420 posts Send private message

Talk to your solicitor immediately, if you have an offer from the bank there should be no reason for them to change it.

Joan





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25 Jun 2010 07:56 by mariadecastro Star rating in Algeciras (Cadiz). 9294 posts Send private message

Legal Questions? Speak to Maria Direct

 By Law, the offer by the Bank is binding:

Provision 5 of Order dated 5th of May of 1994 on transparency of financial operations.

You can find more information on this, by clicking on here

 

 



This message was last edited by mariadecastro on 25/06/2010.

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Director www.costaluzlawyers.es

El blog de Maria



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25 Jun 2010 10:22 by sharonw Star rating in Coin, Malaga. 281 posts Send private message

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Hi chrissmith,


Maria's reply of course is correct in regard to a binding offer, but I think the problem is - as with most of the Spanish lenders - you do not actually receive a binding offer until you sign at the notary!   These lenders advise the T & C's of the mortgage in an email and there is nothing to sign. This is not unusual practice and often your lawyer would ask you to confirm your acceptance of the conditions as correct in an email to them.

 



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Regards

Sharon

sharon@tmasspain.com

 www.themortgageservicegroup.com

 




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27 Jun 2010 22:57 by mariadecastro Star rating in Algeciras (Cadiz). 9294 posts Send private message

Legal Questions? Speak to Maria Direct

If you can choose, choose the Bank which offer to you the Binding offer and report that other one which does not to the corresponsing ombudsman

 



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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