We usually talk about mortgage as if we knew the term perfectly. And yet the mortgage and the mortgage loan are not exactly the same. If you are looking for a loan to buy your house, with the real mortgage guarantee of the property, fill out our contact form, without obligation, and a real estate credit intermediary will analyze the possibilities you have of getting financing:
The mortgage: a real right
The mortgage is a real guarantee right; there are mortgages on real estate (which we usually refer to), but there are also mortgages on movable property. This real right is constituted on the good and, in the case of real estate, it is reflected as a charge in the Property Registry. The holder of the real mortgage right can urge the foreclosure of the good, the forced sale at auction, if the agreed obligation is not fulfilled (usually the payment of a credit or loan).
In other words, the mortgage is a way of guaranteeing the bank that will collect the loan that has been granted to us, granting it a fast and privileged collection form, the foreclosure. Until Law 1/2013 this procedure was so severe that, even in the case of abusive clauses, could it be paralyzed. With the new law, some powers were given to the Judge to stop the execution.
Later, the application of community regulations on abusive clauses to consumers interpreted by the Court of Justice of the European Union, was expanding the ability of national judges to analyze the possible abuse of the clauses incorporated in mortgage loan agreements.
The mortgage loan is a loan granted by a financial entity (although it is perfectly possible for an individual or company to grant it), whose guarantee of return is the mortgage on a real estate, in addition to the rest of the present and future assets of the mortgage debtor and sureties. The expert collaborators of Futur Finances can help you get the best mortgage loan, according to your economic possibilities and needs to be financed (sale, debt reunification, subrogation or liquidity). The loan is a contract whereby the lender (bank) grants a certain monetary amount, in exchange for periodically receiving (usually every month) installments, comprehensive capital and interest.
The most common method of calculation in Spain is the French depreciation or constant installment system, although there are other types such as the increasing quota or the armored quota, among others. In addition to the loan, some entities use the mortgage loan, which consists of authorizing a certain amount to the client, which could be disposed once amortized, with certain conditions and if the bank approves these subsequent provisions.
The loan is the debt and the mortgage guarantees
It is very important to be clear that the debt is answered not only with housing, but also with the rest of assets. The payment date in Spain is legal but must be explicitly stated in the mortgage loan deed, which occurs in very few cases. Therefore, if we cannot pay the loan and the bank auctions our house, it may not be enough to cancel the debt and we will be left homeless and in debt.
At the moment and until there is any change in the mortgage regulations, if there is one, the financial entity that auctions the habitual house can be awarded at 60% of its value and continue claiming the rest of the debt. Unfair but legal; lose home and stay in debt. Therefore, let’s be very cautious when applying for a mortgage loan.
Mortgage borrowing to acquire a home is something very serious, probably the most important financial decision of a family. You have to make this crucial debt decision with information, independent advice and a lot of responsibility.