What to do if the bank offers to change the reference of your mortgage?

For this, it is good to visit the website of the Bank of Spain itself or seek independent advice on the subject, such as through the iAhorro.com portal, where you can receive free advice with the greatest independence by experts in the field or through the legal and economic experts from Good Finance.

You should start from the basic idea that the bank is not going to offer you an interest rate that benefits you, but on the contrary, so you should study the operation thoroughly in case you are interested. Two aspects must be taken into account:

It is also advisable that at the time of the subscription of the mortgage loan, you contemplate not only the fee to be assumed at the beginning, but the importance of the differential that will be applied to you during the entire term of the same.

It is not the same to have IRPH 

Euribor and IRPH are different interest rates. The most common interest rate is Euribor, however, approximately 11% of mortgages in Spain were referenced to IRPH. Both have been fully legal interest rates recognized by the Bank of Spain. As a general rule, IRPH has had a higher value than Euribor, and the great difference between both interest rates has revolved around the fact that the movements that IRPH has made have been more leisurely and constant, their oscillations have been more natural in the market.

Banking entities have been more predisposed to use the Euribor as a benchmark, since the fluctuations recorded during the duration of the loan are smaller. Likewise, and unlike Euribor, IRPH does not usually apply any type of differential or margin, and if this is applied it is usually very low. Currently and after the regulatory change mentioned above, IRPH Boxes and the ECSC type have legally disappeared, so they will no longer be applicable.

Is it a usual banking practice?

Is it a usual banking practice?

It has been a common practice among those clients who had in their mortgage deed referenced to the Euribor and who had the IRPH index as a substitute. Not the contrary, due to the low price of the Euribor in recent years. With the regulatory change, this practice will be limited (somewhat abusive in my view) greatly. If you need more information about it, do not hesitate to let yourself be advised by experts in the field.

Is customer authorization always necessary?

Obviously, in these cases in which the interest rate is legal and is in force, published regularly in the BOE and in the Bank of Spain, such as Euribor, the Entity cannot unilaterally apply other interest rates according to its interests and in its own benefit. In case it did, it would be a completely illegal action.

However, all those mortgage loan holders referred to the old IRPH boxes or CECA have seen as automatically and without legal possibility of claim they have begun to apply the IRPH of the set of Entities, according to the legal provision contained in the aforementioned law, the which has indicated in points 3 and 4 of the Provision that the substitution of the types will imply the automatic novation of the contract, without supposing an alteration or loss of the rank of the registered mortgage and that the parties will lack action to claim the modification, alteration unilateral or termination of the loan or credit as a counterpart to the application of the provisions of the law.

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