From July 22, 2017, the law on mortgage loans and supervision over credit intermediaries and agents is in force. The Act comprehensively and in detail regulates the process of not only offering mortgage loans, but also the conclusion and performance of contracts, as well as their advertising. What changes have been made?
1. A mortgage loan may be granted only by banks and credit unions.
2. The mortgage loan will be granted only in the currency in which the consumer receives the majority of income or has the majority of financial resources in it.
3. Before concluding a loan agreement, the client must receive an information form, both from the lender, intermediary or agent. The information form allows you to compare several loan offers, as it contains information such as about the total amount of credit, loan cost, repayment terms or interest rate. The conditions contained in the form are valid for 14 days.
4. Intermediaries and agents advising the consumer must submit at least 3 mortgage loan offers.
5. The bank has a maximum of 21 days to issue a credit decision from the day of submitting the application. A credit decision is an offer.
6. The bank is obliged to assess the creditworthiness on the basis of information obtained from the consumer, from databases (eg BIK) or from the lender’s internal databases. The contract can be concluded only when the result of the credit assessment is positive.
7. The consumer has the right to withdraw from the mortgage contract within 14 days from the date of signing the contract. Just send a registered letter before the deadline. The borrower incurs only the interest costs for the period in which the bank has paid the loan until its return.
8. The lender, broker or agent is required to provide a permanent model of withdrawal from the contract on a durable medium.
9. Full or partial early repayment of the loan will be possible at any time. The contract may, however, provide for compensation in the event of early repayment of fixed interest rate loans – during the fixed interest rate, and in the case of loans with a variable interest rate before the end of the three-year period. The maximum commission for a mortgage with variable interest rate can not be higher than interest that would have been charged on the repaid amount within one year from the date of actual repayment. The commission can not exceed 3%. amount repaid. The commission for early repayment can not exceed the costs of the lender directly related to the early repayment.
10. In the event of delayed repayment of the loan installment, the bank will set an additional date, which will not be shorter than 14 business days. The bank will also inform about the possibility of debt restructuring.
11. If the borrower is unable to repay the installments, the bank will propose restructuring the debt. The bank will be able to:
- temporarily suspend repayment,
- lower the amount of installments,
- extend the loan period,
- propose a different solution.
If the bank rejects the restructuring application or if it fails, then the bank will allow you to sell the property in a period of not less than 6 months.
12. Ads regarding loans must be legible and footnotes visible. If the advertisement will, for example, inform about the interest rate on the loan, then it must be marked whether it is fixed or variable. In addition, in the ad we find information so far presented, such as the total loan amount, the total cost of the APRC credit, the duration of the contract, the amount of installments. If the advertisement does not contain information about the costs associated with the loan, then you must find information about the amount of its APRC. The above information must be presented on a representative example and in accordance with the law ” as visibly, legibly and audibly as other information on credit costs “. In the case of mortgage loans with a variable interest rate, information about the risk of changing it must be provided.
13. The Act prohibits bundling. You can no longer make the conclusion of the contract conditional upon the purchase of certain products. The exception is a free bank account used to pay the loan installments. It is possible, however, combined sales, consisting in offering other products, but without the obligation to buy them.
14. A register of mortgage and consumer mortgage brokers maintained by the Polish Financial Supervision Authority (KNF) and the transparency of remuneration policy for advisers and credit intermediaries were introduced. The act on mortgage loan and supervision over credit intermediaries and agents introduced at the same time changes to the Consumer Credit Act regarding advertising of consumer credit. In advertisements containing credit costs data, mandatory information must be presented in the same way as visibly, legibly and audibly as other credit-related information. If, for example, a 0% interest rate is displayed, information about the APRC of the loan must also be clearly displayed.