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Unregistered
08-10-2009, 10:58 AM
If I have a mortgage with a Spanish bank do I have to take out their LIfe Insurance or can I arrange my own in England. Many thanks. John.

Lawbird Lawyer
08-11-2009, 11:02 AM
Dear Sir,

No you are not obliged to take their life cover, you can arrange your own.

However, they will then revise the terms and conditions of the binding offer to rebalance it and offset any loss.

Please read our article on the matter:

10 Common Abusive Clauses in Spanish Mortgage Loans (http://www.marbella-lawyers.com/articles/showArticle/10-common-abusive-clauses-in-spanish-mortgage-loans) - 4th June 2009

6.- Bank charges for non requested services which are tagged on to the mortgage loan - This happens when on signing the mortgage loan the lender throws in a bunch of unrequested services such as life covers, home insurance, pension plans or non requested credit cards. This is null and void as per Additional Disposition number 10.23 of LCGC.

Having said this, the reason why an offered mortgage loan may be so competitive is only because the lender has added in these unrequested services which help to offset the financial shortfall for the loan itself. On removing them, the lender will immediately raise the applicable interest rate.