Asufin denounces “doubtful” banking practices in changing fixed-rate mortgages

Some clients would be denounced if the offers were withdrawn before the end of the current term of the conditions The Government negotiates with the sector measures to try to alleviate the mortgage burden on vulnerable families This banking consumer association calls for “more ambitious” measures to vulnerable mortgage debtorsAsufin has observed “doubtful practices” in the banking sector in the changes of mortgages from variable to fixed rate, such as that the entities would not be respecting the binding offers, with price increases in the final offers that are presented to the clients, or “covert” subrogations to “get around” the Mortgage Subrogation Law, as denounced this Monday in a statement. Specifically, it has indicated that the times set by the binding offers would not be respected and, when the client proceeds to formalize the change, the entity would notify you of a rise in the interest rate. In this sense, they would be increasing the n number of complaints from customers who have an offer from the entity with a validity of 30 to 60 days, or even who deliver the European Standard Information Sheet” (FEIN), where the binding offer is formalized and conditions are set up to a certain date. However, these clients reported that these offers would be withdrawn before the end of the term. “This situation occurs because some entities are making offers to more clients than they can assume under those specific conditions. Once the quota is over, they modify the offer for the worse for the next group of clients,” says the association. , many customers would be finding that they had an offer until the end of the month at a fixed rate of 1.95%, but that the bank would change it to 2.55% before the term ends. Asufin assures that this situation is “highly irregular” and recalls that binding offers “have a minimum term” for the client to make the decision and “the entity must maintain it during that time”. In addition, it points out that some unions have also denounced this situation for the employees of the sector, who would not be respecting the conditions offered either, “making their situation worse”. a complaint that has been made in recent weeks. To avoid this situation, the association has proposed to modify the legislation on subrogations and novations, which currently establishes that the client’s entity has 15 days to offer the debtor a modification of the conditions of his loan, in the terms that he deems appropriate, a period during which the subrogation cannot be formalized. In this way, the “counter offer” is facilitated. “We consider that this advantage given to the client entity hinders the normal functioning of the mortgage market at the moment, since it dissuades competing entities from offering substantial improvements to clients outside of them” , he stated. In this way, he considers that, to the extent that the client’s entity can offer “first” an improvement in conditions, once it does not, “the competition should be able to act on equal terms” .Proposal to the EBAAsufin also recalls that it has recently submitted a series of proposals to the European Banking Authority (EBA) to “alleviate the financial burden” that the rise in interest rates implies for families, and among which includes facilitating the change from variable to fixed mortgage or raising the possibility of moratoriums at zero cost. The association points out that, in general, the entities “should facilitate” the renegotiation of the mortgages, for which he believes it is convenient to draw up a guide to good practices with “strict criteria” for entities, in areas such as the marketing of combined products. In addition, he has urged banks that mortgage changes do not imply the placement of other products that “contribute to making the final APR of the loans more expensive.” The association also considers that extending the term of mortgages, with a temporary lack or moratorium on interest, is “bread for today and hunger for tomorrow”, since the interest that is not collected during the stipulated period of time –be it 6, 12 or 24 months– “will be deferred in the rest of it and will end up fattening the remaining installments”. the collaboration between the Economy and the banking system, a draft royal decree has been prepared that would approve a temporary protocol for the extension of terms for mortgage debtors affected by the rise in rates in the current inflationary context. ionist, and which would include the possibility of extending the repayment term of the loans by up to five years, provided that this term does not exceed 40 years from its granting. In this regard, the association insists that the measures for families vulnerable to the increase of interest rates must be “more ambitious” and that the proposed lengthening of terms “cannot imply more debt”.