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How to claim back your bank mortgage costs

How to claim back your bank mortgage costs

20 06 - 2018

bank-mortgage-cost-reclaims

The expenses that consumers usually assume in order to formalize their mortgage loan are going to court, and many judges are backing claims by clients and demanding that banks assume part of the cost. To facilitate the process, we have developed a guide to answer some questions, such as who can claim, what type of loan, what paperwork has to be done or how much money can be recovered.

In 2015, the Supreme Court declared null the clause that the charges are always the responsibility of the buyer of the house. This ruling has led thousands of mortgage clients to claim the money they overpaid before the courts.

If you require assistance or would like TIBC to handle the reclaim for you, we charge a set fee of €250 + IGIC. Get in touch with Teresa on teresa@tibc-sl.com.

So lets start to answer some of those questions.

1. What are the expenses of mortgage formalization?
This is the expense that consumers must face when they sign a mortgage loan, such as the notary, the Land Registry or the Tax on Documented Legal Acts (AJD). On average, its disbursement is around 3,000€, although the figure depends on the amount of the mortgage that was signed and the autonomous community in which the house is located.

2. Who can claim them?
Anyone who has a mortgage loan in effect or even has finished paying it can claim their expenses. According to market data, there are more than 8 million people who have a valid mortgage or have cancelled it in the last 10 years.

3. If my mortgage is prior to the judgment of the Supreme Court, can I file a claim?
"Of course, both the Supreme Court and the Court of Luxembourg consider that it is an abusive clause, which infringes Spanish and European law. Therefore, it must be resituated and duly paid”, says the team of lawyers.

4. How do I claim the expenses of formalizing the mortgage loan?
You will need to formulate the claim by submission of a formal claim to the bank that granted the mortgage.

5. What documents do I need to provide?
To be able to submit a claim for the costs of formalizing the mortgage, you must provide:
• Mortgage loan writing/ The mortgage deeds
• The invoice from the notary
• Registration invoice/Model 600
• Invoice of the valuer
• Invoice of the bank or financial institution
In the event that the affected party does not have any of these invoices, they can request a copy at the notary or the bank.

6. What is the deadline to file a claim?
There are no limitations. It can be done at any time, even if more than four years have passed since the mortgage was cancelled.

7. How does the process work?
According to the lawyers, "a claim will be presented to the bank and it they have a period of two months to respond. If the entity refuses to reach an agreement, it will be necessary to file a lawsuit in court, so the process can be extended for several months. "

8. How much money can be recovered?
As we said a few lines above, the money that can be recovered depends on what has been paid for the formalization of the mortgage loan, which is influenced by variables such as the money requested from the bank and the Stamp Duty tax, which changes depending on the Autonomous Community in which the operation is carried out. However, the lawyers insist that "including legal interest", the figure that the plaintiff could recover can be around 5,600€ on average."

9. If the judgment is favourable, how long does it take to recover the money?
In this case, the maximum period the financial institution has to pay the funds into customer's bank account is two months.

These are the banks that already assume some expenses of the formalization:

BBVA: the bank already assumes the cost of Property Registration completely in the new mortgages and the mortgage loan deed, which is done in the notary.

Santander: the entity is in charge of the presentation and registration of the mortgage loan in the Property Registry and the Notaria fees of the first executive copy of the deed plus the simple copy in favour of the bank.

Bankia: is responsible for half of the expenses of the agency, 100% of registration costs and notary fees related to the electronic and executive copy in favour of Bankia.

La Caixa: this entity assumes a part of the expenses of the agency and currently pays the registration. As for the notary, it also takes care of a part of the copy of the deeds.

Sabadell: the Catalan bank assumes a part of the expenses of the agency. In addition, it pays for those of the Property Registry and those of the notary in full.

Bankinter: this entity is responsible for the total costs of the Property Registry of the deed of the mortgage loan and of the executive copy of the deed executed in the notary's office.

BMN: Banco Mare Nostrum (BMN) assumes the costs derived from the registration of the deed of incorporation of the mortgage in the registry as well as the administrative costs resulting from the processing of the aforementioned registration.

Abanca: the entity is responsible for the expenses of the agency that correspond to the processing of the mortgage before the Land Registry plus all registration costs derived from the registration of the mortgage in the Land Registry correspondent.
The bank also assumes a part of the notary's expenses, such as the issuance of an authorized copy, the telemetric copy that is sent to the registry and supplied by the authorized copy.

Deutsche Bank: As for the deed of incorporation of the mortgage loan, the German bank assumes the total cost of inscription of the loan in the Property Registry and half of the cost of the agency in the processing of the same.

Ibercaja: the entity pays the registration fees of the deed of the loan in the Property Registry.
As you can see, the entities share the expenses with customers, but for now, they pay for the highest part of these, which is the taxes, and the appraisal of the property, according to claimor.com.

Cajasur: 100% of the registry expenses derived from the mortgage operation. The expenses of processing and management of the registration in the Property Registry of said mortgage. The cost of the copy of the deed of mortgage operation that in its case was issued with executive effects.

Kutxabank: 100% of the registry expenses derived from the mortgage operation. The expenses of processing and management of the registration in the Property Registry of said mortgage. The cost of the copy of the deed of mortgage operation that in its case was issued with executive effects.

 

If you require assistance or would like TIBC to handle the reclaim for you, we charge a set fee of €250 + IGIC. Get in touch with Teresa on teresa@tibc-sl.com.

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  • Tenerife International Business Centre SL
  • Calle Cándida Peña Bello 8
  • 38631 Las Galletas (Santa Cruz de Tenerife)
  • 922 730 210
  • 0034 637 838 718

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