Reclaiming Mortgage Expenses

Reclaiming Mortgage Expenses

Claim abusive mortgages

The Supreme Court has declared null and void the clauses regarding the costs of mortgage establishment for being abusive, holding the bank responsible for these expenses as the only one benefiting from their payment. The reasons for considering it abuse are as follows: It is a clause imposed without agreement, Excessive imposition of all mortgage expenses on the borrower without a fair distribution of the economic burden, Transfer of all mortgage expenses to the borrowing party without clearly and accurately specifying the expenses corresponding to each party, Inequality between the rights and obligations of the parties.

With this, the Supreme Court recognizes the right to claim mortgage expenses.


What are mortgage expenses and why can they be claimed?

Mortgage expenses are the charges associated with the formalization of a mortgage loan. These may include notary fees, registration fees, management fees, appraisal fees, taxes, insurance, among others. They can be claimed because the Court of Justice of the European Union has declared that if the clause imposing them is null, the amount paid in excess must be reimbursed.


What requirements are necessary to claim mortgage expenses?

  • That the mortgage was signed before June 16, 2019, the date on which the Law on Real Estate Credit Contracts came into force, which regulates the distribution of expenses between the bank and the client.
  • That the mortgage is not canceled or prescribed, that is, that more than five years have not passed since the last payment or the debt was settled.
  • That the documentation proving the expenses paid is available, such as invoices, contracts, and deeds.


What mortgage expenses can be claimed?

  • The notary's invoice, which corresponds to the fee charged by the notary for authenticating the mortgage loan agreement.
  • The registration invoice, which corresponds to the fee charged by the registrar for registering the mortgage in the Property Registry.
  • The management invoice, which corresponds to the amount charged by the management company for processing the necessary documents to formalize the mortgage.
  • The appraisal invoice, which corresponds to the amount charged by the appraisal company for valuing the mortgaged property.
  • The tax on documented legal acts (AJD), which corresponds to the tax paid for the public deed of the mortgage.


How to claim mortgage expenses?

  • Contact the bank that granted the mortgage and submit a written claim, requesting the refund of the excess paid expenses.
  • If the bank does not respond or rejects the claim, go to the Complaints Service of the Bank of Spain, providing all the documentation that supports the case.
  • If the Bank of Spain does not resolve in favor either, file a lawsuit against the bank, with the advice of a lawyer specialized in this type of cases.

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