I recently took out a mortgage with Barclays Bank and half way through the process I was told I had to buy a one-off mortgage protection policy – issued by the Bank – cost 9,800 Euros. The bank lent me extra money to pay for the policy. In the UK this would not be a requirement and I would not have taken it out in the UK. I was stuck because the appointment at the notary was fixed and the contract for purchase was in place. The mortgage had been approved but we were surprised by this.
Has anyopne else had similar experiences? – I have complained to Barclays Madrid about mis-selling – this really is money to swell Barclays profits with no risk that they would not get the capital sum back.
I have seen many cases of banks suddenly adding sundry insurance policies, or subtly changing the terms and conditions of a mortgage, in the notarial office moments before signing contracts.
The best defense is to insist on receiving a written ‘oferta vinculante’, or binding offer, from the bank before booking dates at the notary. All too often buyers accept nothing more than a verbal confirmation from the bank that everything will be alright on the day.
If the details are not tied down in advance, then of course a bank is free to tinker with the edges of the agreement.