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Mortgage expenses

If you have or have had a mortgage, it is very likely that it contains abusive clauses that have caused you to have paid or are paying more than you should.

The most common are the FLOOR CLAUSE, theMULTI-CURRENCY CLAUSE and the clause that imposes all expenses on the borrowing party (that is, you), the latter being the most common.

It is a clause in force in most contracts that has been considered in numerous rulings as an abusive clause.

When buying a house with a mortgage loan, there are two main expenses, the management expenses, which are paid for carrying out the purchase and sale process, and on the other hand, there are the mortgage deed expenses.

How much money can I recover if I want to claim for mortgage expenses?

On average you can recover €2,000

What mortgage expenses can be claimed after the CJEU ruling: July 16, 2020?

100% of Notary Expenses

100% Property Registration Expense

100% of Management Expenses

100% of the Home Appraisal Expense

100% of the Opening Commission Expense

1- Notary Expenses:

Debido a la importancia del importe que desembolsaremos al firmar una hipoteca, el »contrato» por el que se pone de acuerdo el comprador y el vendedor necesita de un tercero, que asista como testigo, y que constate que lo que se ha firmado, es de mutuo acuerdo, en plenas facultades entre ambos, respetando y cumpliendo las leyes vigentes así como los derechos de ambas partes.

These are the fees we pay to the notary for attesting the deeds. It certifies the steps that the bank has followed in the mortgage deed and purchase-sale process. These amounts are set by law and from these a fee will be applied depending on the length of the writing, and the number of copies made...

2- Property Registration Expense:

La Ley exige que todos los bienes inmuebles deben estar »censados», como lo puedan estar las personas físicas en el Ayuntamiento correspondiente, con el objetivo de saber, en cada momento, a quién pertenecen (titulares), cargas, servidumbres, notas…

It is a necessary expense in every home purchase and sale. This amount, like that of notaries, is also regulated by law.

How much can I claim for property registration costs?

This expense ranges between €100 and €250 for an average mortgage.

3- Management expenses:

The agency is the one who will carry out the previous procedures, property registration and tax settlement. In general, all agencies should charge a similar amount to their clients depending on the services provided.

How much can I claim for management expenses?

The average expense would be between €150 and €300.

4- Home Appraisal Expense:

It is a report that guarantees the bank that the house has sufficient value so that in the event of non-payment they can recover the money lent through the mortgage.

How much can I claim for the home appraisal?

It varies depending on the property, the area, surface and ranges between €150 and €450.

5- Opening Commission Expense:

whta't is the opening Commission?

The opening commission is that service for which the bank charges the client a certain amount of money with the aim of covering the administrative and management costs of the loan.

The money that the bank charges for this opening commission varies depending on the nominal value of the loan requested.

Thus, the most common thing is that the client finds himself at the time of formalizing the loan with an opening commission of 0.3% – 3% on the total amount requested from the bank.

Why is the opening commission considered abusive?

The main reason why more and more courts consider this expense abusive is the lack of negotiation of this expense between the entity and the client and the absence of justification of the expenses that the bank incurs in order to make the mortgage loan effective.

Currently, there is abundant favorable jurisprudence from various courts in Spain, among which, for example, we find Civil Sentence No. 52/2017 of the Court of First Instance of Cartagena on April 28, 2017.

In this ruling, the ruling is upholding and condemns the defendant entity to pay the opening commission that was claimed, with the corresponding legal interests, considering this clause null and void because it is abusive.

How do I know if I have an origination fee on my mortgage?

To know if we have paid the opening commission to the bank or not, we must look in the mortgage loan deed in the fourth clause “commissions” for the “opening commission” section. If this is indeed the case, we will see a percentage of the amount indicated.

How much money can I claim for the opening fee?

You can claim the entire amount that was paid as the opening fee. The most common thing is to claim the amount of €500-6000 depending on the amount requested and the opening commission they charged us.

For example, if the mortgage loan that we formalized in 2006 has a nominal value of €200,000 and the opening fee we paid is 0.7%, you can claim the opening fee of €1,400 for this service plus the legal interest generated since 2006. .

Where can I get the documentation to claim for mortgage expenses?

The first thing we advise you to do is check if you have all the documentation at home and if not, go to the bank itself and request the documentation required to successfully claim.

If for some reason it has not been possible to have this documentation, because you do not have it at home or the bank does not have it, it is best to follow these steps to obtain it:

Notary fee and property registration fee:

As long as you know who the notary and registrar was that you went to establish the mortgage, you can obtain the receipt for the notary and property registration fee if you go to them, in addition to obtaining the deed of the mortgage loan. In addition, it is possible that the notary office itself can tell you the name of the agency to request the corresponding invoices.

Management Expense

The management expense that is contracted can be allocated in 2 ways. The first is the assignment by the client himself, in which case he already knows the agency, and the second is the assignment of this service by the bank itself. If the bank itself assigned you the agency, you can request from the bank the receipt of the expense associated with this service.

Home appraisal expense

It can be easily obtained by searching the bank book that you own or have used in the past. In addition, another type of mortgage expense may also appear in the same passbook.

I have personally made an extrajudicial claim to the bank and it has been rejected.

Can I continue claiming for mortgage expenses?

The answer is yes. In fact, most banks routinely reject out-of-court claims and when they do not, in many cases they offer lower amounts.

You can always claim even if the extrajudicial claim has been rejected. The next action to take would be to file a claim for mortgage expenses through the courts.

It is possible that, like others affected, you have received a negative response from the bank in the extrajudicial claim for mortgage expenses.

This should not be a reason why you should abandon the claim since banks in most cases follow this response pattern.

Is it normal to have this mortgage expense clause?

Yes, it affects almost 100% of mortgages.

Can I make a claim if the mortgage has already been paid?

Anyone can claim mortgage costs. Even if you have canceled the loan, renewed it, sold the house or any other situation, you always have the right to recover those expenses.