Law 5/2019 enacted on March 15th was published
in the B.O.E. on March 16th regulating mortgage loans. It will
serve to give greater protection to customers from banks and
financial institutions.
There is a transition period of three months to give banks enough
time to adapt to this law. Therefore, it will not enter into force
until June 16, 2019.
The most relevant features of this law are:
1. It applies to those mortgages loans
requested by individuals whose purpose is to acquire real estate
for residential use or the acquisition or conservation of land or
buildings which have been built or will be built.
2. The bank or financial institution will be
obliged to provide more information to the customer who is
interested in a mortgage loan and wants to purchase a home. The
bank must provide the customer with a binding offer regarding all
credit conditions. The customer has a period of 10 days to review
it and give his or her consent.
