From 1,25 to 4,95%
Most of the mortgages surveyed by FACUA have clauses imposing base lending rate
On a 20 years mortgage of 110,000 Euros, the difference can be as much as 2,286 Euros more per year.
FACUA.org
España-22/01/2010
FACUA has completed a comparative study of twenty one mortgages offered by fourteen financial institutions, seven with high street branches and seven with online presence only.
Eleven deals, over half of the mortgages studied, have a base lending rate, that can prevent the consumer from benefiting from the fall of the Euribor’s rates. The base lending rates are set from 1,25 to 4,95 %.
According to FACUA, these terms are unfair and, following the association’s complaint, the Senate passed a motion last September acknowledging FACUA’s claims and giving Banco de España (Spain’s Central Bank) three months to present a legal report.
The Government should stop looking elsewhere and ignoring the base lending rate
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