What is it?

The mortgage loan is the contract through which a financial institution lends an amount of money and the borrower undertakes to return it within the agreed terms and conditions, constituting a mortgage on a property as collateral. Notarial intervention guarantees that the borrower receives impartial advice, understands the scope of the loan conditions and executes the deed with full knowledge of his rights and obligations.

What documentation should I provide?

• Valid official identity document.
• Documentation proving the mortgaged assets.
• Appraisal of mortgaged assets.
• The documentation provided by the financial institution, including pre-contractual information.

What procedures does the notary carry out?

Before signing. The notary receives the documentation sent by the financial institution, verifies that the legal deadline for prior information has been met, advises the borrower free of charge and individually, resolves their doubts, verifies that they understand the content and consequences of the loan and authorizes the prior report required by legislation when applicable. Likewise, it prepares the mortgage loan deed for its granting.

After signing. The notary issues the documentation necessary for the registration of the mortgage in the Property Registry, as well as the legally required communications from Public Administrations when applicable.

Useful information

Before signing the mortgage loan, you are obliged to receive free and impartial advice from the notary you choose, and must grant the material transparency certificate. This advice is provided before signing and allows any doubts about the interest rate, installments, expenses, early maturity or any other condition of the loan to be resolved.

FREQUENTLY ASKED QUESTIONS

• What documentation should the bank give me before signing?
  • The legislation on real estate credit contracts establishes that, before signing the mortgage loan, the financial institution must provide you, with the legally stipulated advance notice, the necessary pre-contractual documentation so that you can know and evaluate the conditions of the loan. These include the European Standardized Information Sheet (FEIN), which constitutes the binding offer; the Standardized Warning Sheet (FiAE); the draft contract; information on the distribution of expenses; a document with examples of the evolution of the installments if the loan is at variable interest; information on the insurance or other guarantees required, if applicable, and the warning of your right to receive free and impartial advice from the notary of your choice. All this documentation must also be sent to the notary so that he can verify its delivery and provide you with the prior advice required by Law 5/2019. 
• What deadlines must be respected? 
  • According to the Real Estate Credit Law, the bank must deliver the documentation to the borrower and send it to the notary. From that moment, at least ten days must pass before the mortgage loan can be signed. Before signing the mortgage loan, but not on the same day, the material transparency report must be granted. The entire process must be completed before the validity period of the banking conditions, which is indicated in the pre-contractual documentation provided by the bank.
• Do I have to go to the notary twice?
  • Yes. Respecting the previous deadlines, the legislation requires a prior appearance by the borrower to receive free advice and verify that they have received all the legally required documentation before executing the deed. You must appear on a different day to sign the mortgage loan deed
• Can I freely choose the notary?
  • Yes. In mortgage loans, the borrower has the right to freely choose the notary who will authorize the operation.
• Can I modify the conditions of my mortgage loan after signing it?
  • Yes. If you and the financial institution agree, it is possible to modify certain conditions of the mortgage loan, such as the interest rate, the repayment period or some of its guarantees. This operation is called novation of the mortgage loan and, when required by law, it must be formalized in a public deed and registered in the Property Registry.
• Can I change my mortgage loan to another bank? 
  • Sí. En determinados casos, la legislación permite trasladar el préstamo hipotecario a otra entidad financiera para mejorar sus condiciones, sin necesidad de cancelar la hipoteca y constituir una nueva. Esta operación se denomina subrogación de préstamo hipotecario y requiere la correspondiente escritura pública.