Guindos advances that variable mortgages will be able to move to fixed without hardly spending

01/08/2017

The Minister of Economy, Industry and Competitiveness, Luis de Guindos, has highlighted the improvement that will be for consumers the future law of real estate credit that includes, among other things, that if the consumer decides, according to his bank, can pass Its variable-to-fixed rate mortgage "practically without expenses", which is "safe" for the citizen because the euríbor is now in negative but it will not be like this "all the life".
In his speech at the breakfast-colloquium organized by Unicaja and daily SUR, he pointed out that almost 95% of mortgages in Spain are of a variable type linked to the Euribor, and recalled that these are contracts "very long term, 25 or 30 years, and interest rates will not always be the same; In fact a raise of rates is going to be reflected in the mortgages and gives the possibility to pass it to fixed type ".
The regulation will try to facilitate "practically without expenses and if the consumer decides and agrees with his bank, he can pass his mortgage at a fixed rate." This, he stressed, will benefit the citizen, remembering how in 1996 most mortgages were fixed rate and that trend changed.
The Government, has stated De Guindos, "will give a very cheap option" to implement that change, so that will try to improve conditions "from the point of view of the consumer." As to what fixed rate, it has clarified that it will have to be a negotiation between the parties.
Sources from the Ministry of Economy consulted by Europa Press have explained that the regulation will have an impact on reducing costs that occur when the change from a variable rate mortgage to a fixed rate mortgage is made with another financial institution.
Another of the issues raised by the minister has been that the notary will have to act twice, in the pre-contractual phase and when the mortgage is signed. "We will also try to ensure that transparency is absolute with expenses and clauses on the ground and with full clauses, because the mortgage is not a simple contract, and it is to avoid opacity, which is the source of nullity," Has exposed the holder of Economy.
Multi-currency mortgages
He has also alluded to other planned changes, so that a mortgage in foreign currency can pass to the euro "without the minimum cost or without the slightest penalty." In his speech he also referred to the important adjustment that has occurred in the construction sector in Spain during the crisis and which has caused residential construction to reduce its weight to more than half.
In his view, the situation is going back, "in line with the recovery of financing flows" but "it is premature to say that there is a bubble." For De Guindos, the reactivation of the purchase and sale of housing "is good news."