Reduction of late-payment interest

In order to reduce the financial burden of late-payment interest on debtors, the Code provides for a reduction in late-payment interest so that it is more favourable than the agreed interest.

In the mortgage loan deed we will find a clause establishing the different interest rates applicable to the loan, distinguishing between:

  • The interest known as remunerative interest, which is the amount we will pay the bank for lending us the money.
  • Late-payment interest, which will be applied when we fall behind with or cease to pay the instalments.

From the moment the debtor requests that the institution applies the Code of Good Practice measures and confirms that he/she meets the exclusion threshold, the late-payment interest that will be applied to the outstanding principal of the loan will be a maximum of the agreed remunerative interest plus 2 points.

 

For more information, see our Report  (90 KB) and the Control Committee's response to this question  (91 KB).

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