At the end of last year, the Government of Spain enacted Royal Decree-Law 19/2022 to try to alleviate the situation of those with variable rate mortgages whose payments were skyrocketing due to the rise of the Euribor. And among other measures, this regulation prohibits the application of commissions for changing a variable mortgage to a fixed rate if said modification occurs between November 24, 2022 and December 31, 2023, both days included.
This aid, valid throughout this year, is about to expire. Does this mean that going from the variable rate to the fixed rate will no longer be free? According to the financial comparator HelpMyCash.com, banks will be able to charge the commission again starting December 31. However, its analysts clarify that its cost will not be excessive and that, furthermore, The Government could extend the decree before the end of 2023.
From the comparator they affirm that there are three ways to change a variable mortgage to a fixed rate: through an agreement with the bank itself (novation), with the transfer of the loan to another entity (subrogation) or with the signing of a mortgage loan, with a fixed interest, to cancel the credit at a variable rate.
Royal Decree-Law 19/2022 specifically prohibits the charging of commissions if a variable mortgage is changed to a fixed rate through novation or subrogation. However, starting December 31, 2023when this measure expires, the maximum commission that banks may apply, by law, will be of a 0,05%although they can only apply it if the original mortgage was signed less than three years ago.
Likewise, the decree prohibits charging commissions for the early repayment of variable mortgages until December 31, 2023. When its validity expires, the maximum penalty that entities may charge for this operation will be between 0.15% and 1%depending on the date the original deed was signed.