The Bank of Spain has released a video on social media to warn mortgage holders that it is not necessary to have their salary paid into the same bank that granted the loan, but it reminds them to review the contract.
The Bank of Spain has focused on one of the most contentious points of mortgages: the linking of the bank account. In a video shared on its social media, the regulator warns that it is not mandatory to have the current account with the same bank that grants the mortgage, although many institutions require it as a condition for applying better terms.
Review your mortgage contract before switching banks
The warning from the Bank of Spain comes with an important nuance: each contract is unique. “You need to review the contract you signed with the bank because some institutions require you to have that account,” they emphasise from the agency. Therefore, the customer must read the fine print to know if they accepted that binding clause.
It is common for banks to offer a lower interest rate in exchange for having the salary paid into the account, taking out insurance, or pension plans. But none of these linkages are legally mandatory. The problem arises when the signed contract includes a clause that requires maintaining the account with that institution for the entire duration of the loan.
The trick of linkages: bonuses that are not free
The Bank of Spain explains that the bonuses for linkage are not a gift, but a commercial strategy. If the customer does not meet the requirements (for example, moving their salary to another bank), the institution can raise the interest rate applied. For this reason, before signing up, it is advisable to calculate whether the initial savings compensate for potential future increases.
Additionally, the regulator reminds that there are mortgage brokerage platforms that, in exchange for a commission (usually paid by the bank), manage the search for the best offer among various institutions. This saves paperwork but does not exempt one from attending the notary in person for the signing.
What to do if you want to switch banks while having a mortgage?
For mortgage holders who already have a loan, the recommendation from the Bank of Spain is clear: review the original contract. If there is no mandatory linkage clause, the account can be moved to another institution without penalty. Otherwise, it will be necessary to negotiate with the bank or wait for a future renewal.
The process of signing a mortgage, the regulator reminds, always requires the physical presence of the notary, who must explain all the conditions to the client. Days later, in a meeting with the seller and the bank, the loan is formalised with the property as collateral.
“Not everything can be done online: when it comes to signing, you will be required to go to a notary so that the notary can properly explain what you are signing,” they state from the Bank of Spain.
Practical tips for future mortgage holders
For those considering taking out a mortgage, the Bank of Spain suggests comparing offers from at least three institutions and not being swayed solely by the initial interest rate. It is crucial to calculate the total cost including fees, mandatory insurance, and potential rate increases if linkages are not met.
Another recommendation is to be wary of offers that require multiple linked products without it being clear whether they are mandatory. In any case, the customer has the right to request a copy of the contract before signing and take it home to study it carefully.
The Bank of Spain concludes that transparency is the best weapon for consumers. Knowing your rights and reading the fine print avoids unpleasant surprises. And, if there are doubts, one can always turn to a consumer association or the bank's own complaints service.
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