Note
Ley hipotecaria 2019: who pays mortgage costs
Quick answer
Ley 5/2019, in force for loans signed on or after 16 June 2019, moved the mortgage deed costs to the lender, required standard information sheets and a notary meeting, capped early repayment fees and limited early maturity. This page summarises it from the Bank of Spain.
Applies toBuyers who have heard of the 2019 mortgage law and want to know what it does.
On this page: 9 sections
§ 1Why it exists
Ley 5/2019, de 15 de marzo, regulates real-estate credit contracts. It brought European rules into Spanish law and responded to years of disputes about the clauses in mortgages, such as who pays the costs, minimum rate clauses and default interest. The Bank of Spain’s economic bulletin of early 2019 summarises its main features. This page belongs to the chapter in an overview of applying for a mortgage.
§ 2Costs
Under article 14, the borrower bears the cost of the appraisal, and the lender bears the notary fees for the mortgage deed, the registry fees for registering the guarantee and the gestoría. Copies are paid by whoever requests them. Taxes follow the tax rules. A closer look at costs and fees explains the allocation in practice.
§ 3Information
The lender must give the standard information sheet and the warnings sheet at least ten calendar days before the signing. The warnings sheet must flag, among other things, minimum interest rate limits where they exist. The notary must advise on each clause and the record carries no fee.
§ 4Early repayment
The law caps what a lender may charge for early repayment. For loans signed on or after 16 June 2019, the Bank of Spain gives 2% in the first 10 years, then 1.5% for fixed-rate loans, and 0.25% in the first 3 years, or 0.15% in the first 5 years if agreed for variable-rate loans. The rates chapter explains it. The Bank of Spain’s pages give two different figures for the charge when a variable loan switches to a fixed rate, so we do not state one.
§ 5Early maturity
The Bank of Spain’s summary says a lender can demand the whole loan early only after a default above a threshold, which in the first half of the loan’s life is 3% of the capital or 12 instalments, with a higher threshold in the second half. The lender must also demand payment and allow the borrower at least a month. We have not read the article itself, so check the exact text with your lawyer.
§ 6Tied products and conduct
Tied sales are generally prohibited, lenders must assess solvency before and during the loan, and staff pay cannot be linked to lending volume, according to the Bank of Spain’s summary.
§ 7Mixed rate
The law sets no minimum fixed period for a mixed-rate loan in the article we read; it only treats loans fixed for at least five years differently for the illustrative APR. The mixed rate page in the rates chapter explains.
§ 8What we have not read
We read the first part of the law, up to article 19, and the Bank of Spain’s pages on the rest. Provisions on foreign-currency loans and default interest are described in the law’s preamble, which we read, but not in their articles. We do not state their figures.
§ 9More on this topic
A closer look at mortgage documents explains what lenders usually ask for and a closer look at the appraisal explains the lender’s appraisal and who pays.
A closer look at how long it takes explains the timetable and the legal minimum and a closer look at mortgage brokers explains how to check and use an intermediary.
A closer look at pre-approval explains what an early indication is worth.
FAQRelated questions
Does the 2019 law apply to my loan?
It applies to loans signed on or after 16 June 2019, with some provisions reaching earlier loans. The Bank of Spain gives different fee tables for loans before and after that date. Ask your lawyer which rules govern your contract.
What is early maturity?
It is the lender’s right to demand the whole loan after missed payments. The law restricts it to defaults above stated thresholds, and requires the lender to demand payment and allow time. The thresholds are in the text below.
Where is the law?
In the official gazette under its number and date, 15 March 2019. Our reading covered the early articles plus central-bank summaries, and the sources block lists both.
Sources
- Banco de España, Cliente Bancario: Compensación o comisión por reembolso o amortización anticipada total o parcial de una hipoteca (official source, opens in a new window), Caps for loans signed on or after 16 June 2019Last checked 18 October 2026
- Boletín Oficial del Estado: Ley 5/2019, de 15 de marzo, reguladora de los contratos de crédito inmobiliario (official source, opens in a new window), Articles 8, 10, 14 and 15 read; later articles not readLast checked 18 October 2026
- Banco de España: La ley reguladora de los contratos de crédito inmobiliario (Boletín Económico, 1T 2019, recuadro 5) (official source, opens in a new window), Allocation of costs, early maturity, information dutiesLast checked 18 October 2026
Financial note. No rate is printed unless it comes from a dated, official publication. Capital is at risk, exchange rates move, and no lender, broker or provider is recommended here. Mortgage terms are set by each lender; ask a registered intermediary about yours.