What should you know when you apply for a mortgage?

  • First, that the bank is, in principle, under no obligation to approve your application, however much you believe that you fulfil the requirements; when it comes to the granting of transactions, banks are free to approve or reject applications, in accordance with their risk criteria.

  • That said, once the bank has started to evaluate your application and accepted your possible limitations (such as your ability to pay and the collateral you are providing) it may only reject it if, in accordance with its risk policy, circumstances are identified that were not initially apparent.

  • There is no specific time limit for approving the transaction. However, in accordance with good practice, a decision should be made within a reasonable period, taking into account the specific circumstances of each case. Moreover, in the event that your application is rejected, you should be notified of this as soon as possible, so that you can apply to another bank for the financing you require.

  • Generating false expectations about the granting of transactions is not in line with good financial practice and conduct, because you may be led to assume commitments (e.g. to purchase a house) that you are then unable to meet.

  • There is no rule on transparency requiring your bankto inform you of the reasons for rejecting your application, unless this has to do with your inclusion in solvency files, in which case you should be given reasons.


For further information, please check our 2020 Complaints Report (in Spanish)Abre en ventana nueva

Did you find this information useful?