Mortgage swapping to be free
The Spanish government is planning to make mortgage
swapping free.
Currently banks are allowed by government legislation
to charge 05% of the pending amount for mortgages contracted
after 27th April 2003, and up to 1% can be charged for
in mortgages contracted before that date. This does not
include other associated transaction fees, such as notary
fees and registry charges. All this often makes anyone
planning to change his or her mortgage to another bank
think again, or forget about it altogether.
However. Pedro Solbes, Economy Minister for Spain, announced
his desire to scrap these fees, making changing one’s
mortgage completely free. ‘“We intend that
mortgages should become more transparent and that consumers
find it easier to go from one mortgage model to another”
commented Minister Solbes at the Spanish Parliament. AUSBANK
(The Spanish association of bank service users) rushed
to, support this measure.
In the opinion of Luis Pineda, president of AUSBANK,
these measures would revitalize the mortgage sector,
encouraging the creation of a more competitive market.
He concluded by stating that this initiative would contribute
towards Spain being a more modern and efficient country.
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