Changes to terms and conditions of mortgage

We are due to complete tomorrow and the bank providing the mortgage has just informed us that the rate applicable for the first year has been increased as they don't want to lend to anybody at the moment and hope that this will deter applicants that have already been approved. I understand that Spain's banks are not regulated as they are in UK but surely their mortgage offer has some kind of legal obligation? I wonder if anyone has had experience of such an instance and whether there are any tips to try and persuade the bank not renege on their original offer.

The option of pulling out and looking for an alternative offer is complicated by the VAT increase next week so think they have us by the short and curlys but if anyone has any advice that would be greatrly appreciated. Would my solicitor (who I can't get hold of as usual) be able to exert presuure?

Hi Chris, I would be quite sure if you read the small print in your mortgage offer the bank can alter the terms of the offer or indeed withdraw it all together. You are right they have you by the short and curlys, so if you can live with the new offer I suggest don't make waves and take it. Sorry to be of no real help but I think you will find you have no alternative.

Talk to your solicitor immediately, if you have an offer from the bank there should be no reason for them to change it.

Joan

 By Law, the offer by the Bank is binding:

Provision 5 of Order dated 5th of May of 1994 on transparency of financial operations.

You can find more information on this, by clicking on here

Hi chrissmith,

Maria's reply of course is correct in regard to a binding offer, but I think the problem is - as with most of the Spanish lenders - you do not actually receive a binding offer until you sign at the notary!   These lenders advise the T & C's of the mortgage in an email and there is nothing to sign. This is not unusual practice and often your lawyer would ask you to confirm your acceptance of the conditions as correct in an email to them.

If you can choose, choose the Bank which offer to you the Binding offer and report that other one which does not to the corresponsing ombudsman