Protecting property owners in Spain

By Matthew Elliott Wednesday, 19 April 2017 13:17 0
European Court of Justice, Luxembourg. European Court of Justice, Luxembourg.

NEW banking regulations will protect Spain-based home-owners from foreclosure or eviction but critics say they don’t go far enough. With social unrest in its cities, and under intense pressure from the EU, Spain has passed new measures which prevent banks from initiating foreclosures until the default reaches between three and five per cent of the credit.  

That's a bold move for Spain, which has traditionally had some of the more lax mortgage regulations in Europe. But it still falls far short of the tighter regulations which lawyers and activists alike have campaigned for. In Germany for instance, the default band is between eight and ten per cent, granting property owners more leeway.  

The EU Court of Justice in Luxembourg has also ruled that specific provisions should be introduced into all mortgage contracts when vulnerable parties, such as the unemployed, are involved. As yet, Spain has no such provisions.  

Questions also remain over higher interest rates and more easily attained loans. Spanish banks are still getting accustomed to the new safety first regime that has defined the property market since the recovery began.  

New players on the mortgage scene will also soon make an impact. The banks are now readying themselves to hand out billions in compensation over unfair mortgage terms. New online companies are looking to step in with tailor made mortgage offers far more flexible than previously available. 

Comments (0)

There are no comments posted here yet

Leave your comments

Posting comment as a guest. Sign up or login to your account.
0 Characters
Attachments (0 / 3)
Share Your Location

Poll of the Week

Do you attend religious events over the Christmas period

Latest Tweets

From IFTTT
Driver dies after collision between car and a lorry https://t.co/c9qgQg566l https://t.co/CkxR5SzXN5
From IFTTT
New branch of Spanish Property Choice estate agency opens in Albox https://t.co/S292qMhuWf https://t.co/eTRzmcGG8Z
From IFTTT
Austrian airline Niki files for bankruptcy leaving thousands stranded https://t.co/1CX7KQPmoL https://t.co/rICXqedrK8
Follow Euro Weekly News on Twitter

Post Gallery

LEO THE LION: Treasuring every moment…

Ryanair announce flight cancellations due to air traffic control strike in France

Family of four-year-old cancer boy issue urgent  appeal for help

EXCLUSIVE: Brit issues warning after being robbed in broad daylight in Costa Blanca

Flights between UK and Spain likely to be hit as French air traffic controllers strike again

Axarquia council cat cull questioned

Police smash animal trafficking network in the Balearics

Icelandic airline to launch daily flights between Spain and UK

Spain's government challenges 'bloodless bullfighting' law