Homeowners consider change your bank mortgage or change the condition of the loan you have until the next 31 December to do so without introducing a commission. This step, is inspired by the Code of Good Practices of the Government, will expire at the end of the year, and if an extension is not approved, financial institutions will be able to collect again up to 0.05% in commissions resulting from a change from fixed to variable or mixed rates.
Two years of temporary relief for mortgage holders
he is Code of Good Practiceswhich was approved in 2022, appeared in the context of economic tension for families due to increased mortgage payments. In April 2022, the Euribor, which had been negative since 2016, began a meteoric rise that reached a 4.16% in October 2023the highest level since 2008. This increase has translated into an increase in hundreds of euros in monthly payments for holders of variable mortgages.
Given this situation, the Government decided to ban commissions for subrogation and changes in mortgage conditions, encouraging clients to renegotiate with their banks or transfer their loans to organizations with offers better. Now, with the Euribor having moved down, standing at changed so far +2.69% compared to yesterdayand by relaxing the policies of the European Central Bank (ECB)a final window opens to take advantage of this step.
What does the end of free service mean?
From January 1, 2025if new extensions are not approved, the mortgage parties must assume the responsibility again. 0.05% charge for changes in their loans. Although this percentage is low, it represents an additional cost that may prevent some owners from seeking better conditions.
For example, for an unpaid mortgage of 150,000 euros, the commission would be 75 euros. Although it is not an exorbitant figure, it may have a psychological effect on clients, who may find the renegotiation process more expensive or more complicated.
Who should act now?
This context is particularly relevant for those who have mortgages with variable rate contracts that survive in less favorable conditions than the current ones. Financial institutions have started offer more competitive mixed rates and downward revisions to fixed rates, which could provide opportunities for those seeking greater financial stability.
Likewise, switching banks without commissions is an attractive option for those considering it remove your mortgage to an entity that offers lower emissions or better services.
What happens after December 31st?
Although the Government could deal with the possibility of extending this measure in the next Ministerial Councils, there are no clear indications that this extension is on the agenda. With the economy showing signs of recovery and the Euribor moderate, the authorities may consider that there is no longer an urgent need to suspend commissions.
Meanwhile, for those with a mortgage, the message is clear: time is short. Taking action before the end of the year could make a big difference in personal finances for years to come.
2024-11-30 15:16:00
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## Time Running out: Can You Still Avoid Mortgage Fees Before the End of the Year?
**World Today News Exclusive: An Expert Interview on Avoiding Mortgage Commissions**
**By [Your Name], Senior Editor**
Spain is facing a deadline for homeowners who want to renegotiate their mortgages without incurring hefty commissions.Wiht the clock ticking down to December 31st, manny are scrambling to understand their options. To shed some light on this complex issue, we sat down with [Expert Name], a renowned financial advisor with [Years of Experience] years of experience in the Spanish mortgage market.
**World Today News:** Thank you for joining us today, [Expert Name]. For those unfamiliar with the situation, why is December 31st such a crucial date for mortgage holders in Spain?
**Expert:** The deadline stems from the government’s Code of Good practices, which allows homeowners to modify their mortgages without facing commission fees. This initiative encourages financial flexibility for borrowers and aims to help those who might potentially be struggling with rising interest rates or changing financial circumstances. Unluckily, if the deadline passes without an extension, this valuable opportunity will expire.
**World Today News:** What kind of modifications can homeowners make under this Code of Good Practices?
**Expert:** Homeowners have the ability to negotiate various aspects of their mortgages, including the type of interest rate, the loan term, or even switching to a fixed-rate mortgage to gain more stability. The possibilities are diverse, and the key is to discuss your individual needs with your bank.
**World Today News:** What advice would you give to homeowners who are considering renegotiating their mortgages before the deadline?
**Expert:**
* **Act quickly:** Don’t wait until the last minute. Start the process sooner rather than later to ensure you have ample time to explore your options and make informed decisions.
* **Assess your needs:** Determine your financial goals and priorities. Do you need a lower monthly payment, a fixed interest rate, or a shorter loan term?
* **Compare offers:** Don’t settle for the first offer from your current bank. Contact other lenders to compare interest rates and loan terms.
* **Seek professional advice:** Consider consulting with a financial advisor who can guide you through the process and help you make the best decision for your unique circumstances.
**World Today news:** What happens if homeowners miss this deadline?
**Expert:** If the Code of Good Practices is not extended and homeowners miss the December 31st deadline, they will likely face standard commission fees when renegotiating their mortgages. These fees can vary depending on the bank and the specific loan modification being made.
**World Today News:** Are there any signs that the Government may extend this deadline?
**Expert:** As of right now, there is no official confirmation from the Government about extending the deadline.This situation is subject to change, so it’s crucial for homeowners to stay informed and act decisively.
**World Today News:** Thank you, [Expert Name], for providing such valuable insights. We hope this clears up some of the confusion surrounding this important financial deadline.
**For more details on mortgage renegotiation and the Code of Good Practices, please visit the official website of the [Relevant Spanish Financial Authority].**
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**Disclaimer:**
World Today News encourages readers to consult with qualified financial professionals for personalized advice about their specific financial situations.
