Walter Finch
A HUGE number of home buyers in Spain are claiming refunds from their lenders after the EU changed the rules on who pays the mortgage expenses during a purchase.
The Spanish banking regulator has so far received 40,000 requests received in the first half of 2024 alone following the ruling, which could see millions of mortgage holders recoup millions of euros in unfair fees.
It is thought that these expenses, which include notary fees, agency fees, appraisal costs, taxes, and land registry fees, can add up to between 1% and 3% of the total mortgage.
Now, the High Court of Justice of the European Union (CJEU) has ruled that some of these costs should be shared, paving the way for homeowners to recoup an average of €1,500 each for the bank.
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The number of complainants is expected to reach between 50,000 and 60,000 by the end of the year, far exceeding previous records.
The majority of complaints are related to mortgage loans, followed by card cases and current accounts.
The Bank of Spain, which is the regulator, has observed that many banks are voluntarily returning these fees to customers without the need for legal action.
However, the number of claims that have not been admitted has also increased, with 61% of claims being rejected.
The most common reasons for rejection include incomplete information, cases of fraud, and referring the matter to the bank’s customer service department.
Despite these rejections, the Bank of Spain has resolved a significant number of claims in favour of consumers.
It has also introduced new criteria for supervising the conduct of banks, including bringing in measures to prevent fraud and ease the cancellation of mortgages.
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Anyone who took out a mortgage before June 2019 and paid all the associated expenses is entitled to make a claim, according to law firm Muñoz Abogados.
According to the National Statistics Institute (INE), 15.2 million mortgages were taken out in Spain between January 2003 and December 2018 for home purchases.
Homeowners can still claim even if they’ve paid off their mortgage in full.
To claim, you’ll need your mortgage deed and related invoices. If you don’t have them, you can request copies from your bank or agency.
Key Points:
- Claims are valid for mortgages signed before June 2019.
- The EU ruling extends the deadline for filing claims.
- Expect to recover between €1,500 and €3,000, depending on your mortgage size.
- You can still claim even if you’ve paid off or sold the property.
