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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 1102. Mortgage and related products. Obligatory?
Thursday, February 6, 2014 @ 6:59 PM

Three useful tips to take into account when negotiating a mortgage:

1. Only obligatory Insurance by Law ( Mortgage Law) is a  home insurance that provides basic coverage against flood, fire or earthquake. There are certain rules that can make this insurance cheaper: coverage needs to be made on the house but not on the soil or content . House has an specific value " for insuring purposes" on the valuation.

2. Any other insurance offered by the Bank is not obligatory. Banks offer better interest conditions for the mortgages when these are hired with them or associated entities. This is a legal practise.

3. It is always possible to waive the insurance taken "by mistake" when you can prove lack of information or deception by the Financial entity. 

Costa Luz Left

Zahara de los Atunes - Entrada (2005), Zahara, Cádiz, Costa de la Luz, South western Spain, by Juan Jimenez Martinez, at flickr.com
 



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