Despite having a world of information on mortgages, new doubts always surface at the critical juncture.
Mortgages are complex long-term financial products. Consequently, close attention must be paid when arranging them. Remember that the best mortgage is the one that suits your needs and circumstances.
When you finally find the right house, you will probably need financing to pay for it, so you decide to search online first. An overwhelming range of offers unfolds before your eyes.
While lending is broadly unrestricted, mortgage loans have certain characteristics that mean you can only arrange them with certain financial institutions. The financial institutions on the Banco de España’s registers with which you can arrange a mortgage are credit institutions, specialised lending institutions and real estate lenders. Real estate credit intermediaries, who channel offers between institutions and customers, also feature on these registers. Being registered provides certain advantages, e.g.:
- The registers detail the institutions’ identifying data and the activities they are authorised to pursue.
- Registered institutions are CCR reporting agents and can access its information.
- If you have a problem with these institutions, you can lodge a complaint.
The amount of offers for mortgages than can be arranged via digital channels is also striking. In these cases, remember:
- That the legislation recognises digital media as equivalent to paper for all purposes. Under no circumstance should arranging a mortgage digitally result in your rights as a customer being less protected.
- That by taking out a mortgage digitally you assume the same responsibilities as if you were to arrange it in person.
- That institutions must fulfil the same information obligations, such as providing us for free with the full contents of the documents that we sign on a durable medium.
To request all the information you need in order to understand what you are going to sign.
Remember that a mortgage agreement must be entered into in person in the presence of a notary.
To help you with the world of mortgages, here is some information on your first mortgage, the costs involved, the different institutions offering mortgages and much more.