Mortgage costs in Spain and the shift in responsibility
In December 2015 a pivotal moment arrived for Spain’s mortgage sector. The Organization of Consumers and Users, known as OCU, and the Supreme Court ruled on the burden of formalization costs. The court declared the requirement that borrowers cover all these costs to be improper and abusive. This ruling opened a window for thousands of homeowners to challenge what they believed was unjust financial treatment, a point underscored by OCU on its platform.
The Supreme Court clarified that charging clients for all the expenses tied to formalizing a mortgage was abusive practice. Yet the ruling did not specify the precise share each party should bear. OCU noted that even though the prevailing expectation had been for banks to bear most or all of the costs, opinions and interpretations varied across different audiences in the country.
By January 2019, several Supreme Court decisions and a ruling from the Court of Justice of the European Union clarified which costs should be reimbursed to borrowers. Specifically, consumers could expect reimbursement for several key expenses: real estate registration, management, and valuation costs. In addition, half of the notary expenses were to be covered by the lender or shared between the parties.
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How long can a claim be filed?
OCU explained that the legal window for making a claim follows a five year statute of limitations. There is ongoing debate about when this period starts. Some banks pushed back, arguing the deadline had passed. With ECJ guidance and OCU statements in view, many began counting from January 23, 2019, the date when the Supreme Court laid out the distribution of expenses. Under this interpretation, the window would close on January 24, 2024.
Important development for mortgage holders: a potential shift in April 2024
How to claim mortgage costs through OCU
Those who signed a mortgage before June 16, 2019, when the Real Estate Loan Act took effect, could pursue a claim through OCU. Their official statements note that filing via OCU yields several benefits: access to legal counsel from specialists in mortgage law, coverage of both court and extrajudicial processes up to a final judgment or settlement, and the potential to address other issues within the same process such as IRPH, single premium life insurance, or floor clauses. This broad approach is designed to maximize relief where abusive provisions appear in mortgage agreements.
OCU emphasizes that rulings from the Supreme Court and the CJEU have created a real opportunity for tens of thousands of consumers to contest abusive mortgage clauses. The evolving legal landscape continues to shape how these claims are handled and resolved, with ongoing discussions about the scope of reimbursement and the procedures borrowers should follow. The core message remains clear: borrowers have potential avenues to recover costs deemed improperly charged at the signing of their home loans, and organizations like OCU provide structured support to pursue these remedies.