Mortgage settlement

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14 Oct 2017 14:10 by Sheen54 Star rating. 3 posts Send private message

Hi, I was wondering if anyone could advise me about getting a settlement figure. We have contacted our spanish bank twice but no joy.

We are hoping to move over next year. So trying to budget.

Many thanks.

 





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17 Oct 2017 12:12 by mariadecastro Star rating in Algeciras (Cadiz). 9294 posts Send private message

Legal Questions? Speak to Maria Direct

Dear Sheen:

What is the settlement you are pursuing? Giving the property back as payment of the mortgage loan debt?

Kind regards

Maria



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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17 Oct 2017 17:13 by Sheen54 Star rating. 3 posts Send private message

Hi Maria,

We are trying to find out if there us any benefit to paying off our mortgage earlier.

Thanks for taking the time out to reply.





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17 Oct 2017 17:20 by juansheetisplenty Star rating in Cartagena. 274 posts Send private message

juansheetisplenty´s avatar

If you have internet banking the details of the mortgage and outstanding balance should come up. If not they should be sending you at least a  annual statement. Typically (depends on terms and conditions) a bank will levy a 0.25 percent charge of the outstanding balance for early repayment plus of course remaining balance.

Saludos

 


This message was last edited by juansheetisplenty on 17/10/2017.



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17 Oct 2017 18:48 by Sheen54 Star rating. 3 posts Send private message

Thanks for that information. Not great news. Just going to have to keep paying a mortgage.😔





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18 Oct 2017 11:03 by mariadecastro Star rating in Algeciras (Cadiz). 9294 posts Send private message

Legal Questions? Speak to Maria Direct

This commission can be agreed and that will be prevalent if it is respectful with maximum limits. It can be agreed that no commission is taken.

• Mortgages at variable rates signed before 04/27/2003: The maximum commission will be 1%, whether it is a cancellation per subrogation or not.

• Mortgages at variable rates signed between 04/27/2003 and 9/12/2007: In the case of early cancellation by subrogation, the maximum fee will be 0.5%. If it is not by subrogation, the maximum commission will be 1%.

• Mortgage loans at fixed rates signed before December, 9th, 2007: maximum limit of 2.5% for early cancellation. For those formalized as of 9/12/2007 will have to attend the compensation regime for withdrawal and / or interest rate risk (below).

• Mortgages (fixed and variable) formalized as of 9/12/2007: Here we refer to (1) a commission for withdrawal and / or (2) compensation for interest rate risk.

(1) As for the compensation (commission) for withdrawal, the commission cannot exceed 0.5% of the capital amortized in advance if it occurs in the first 5 years of the loan and may not exceed 0.25% if it occurs after the first 5 years.

(2) If we talk about compensation for interest rate risk, the rules (article 9 of Law 41/2007 does not stipulate a maximum limit), will be the one that has been agreed in the contract, and "will depend on whether the cancellation generates a profit or a loss of capital to the entity.

• No cancellation fees from sixth year?

A preliminary draft of the Real Estate Credit Regulatory Law that responds to the transposition of the European Directive 2014/17 eliminates the commission for early repayment if it occurs from the sixth year. That is, the commission that could be up to 0.25% will be 0 from the sixth year. This Law has not yet been approved and it is to be approved within the next months.



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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