OCU requires more information for consumers on new “variables” mortgages

The banks are taking steps to "protect" against the current level of Euribor negative in the signing of new mortgages. Although it is quite unlikely that the Euribor falls to sufficient negative levels for banks have massively discounted interest as reflected in the spreads of signed mortgage contracts in the years of the housing bubble, it is now demanding customers accept clauses in new contracts in practice represent a cap on the interest rate variation applied to them. According to reports in the media this new "clause" is being introduced in manuscript form as established by the regulations.

Despite comply with the legal requirements of transparency these new practices can be confusing for the consumer. OCU requires that additional information be provided consumers so they can assess whether signs the contract or look for other alternatives.

We must explain to users that based on this new "clause" the possible margin in the fee to pay for their mortgages is huge upside and little or no down. Therefore OCU believes that this type of mortgage should not be called "variable rate" to avoid misunderstandings lead to consumers.

OCU calls on users to study their financial situation wisely before signing mortgages. And that is good advise about the risks of what might be signing