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My bank has merged… Can my mortgage conditions worsen?

The Bank of Spain ensures that the conditions of the mortgages cannot be changed whatever the circumstances. ShutterStock

The banking world is changing and an example of this are mergers between different entities. March 26, 2021 the union between two banking giants became official: Bankia Y Caixabank, thus giving rise to one of the largest banks in Spain. Another merger that is about to take place is that of Unicaja and Liberbank.

Faced with this financial outlook, clients can be afraid that the conditions they had with their trusted bank will change especially in the more complex products they have, including mortgages.

When one entity merges with another the change is not immediate. This means that a person who was a Bankia customer, for example, does not become a Caixabank customer the next day. Both companies must exchange information, create new platforms, etc. to integrate users from both one bank and another. What’s more, all the steps that the entity must communicate to customers in advance.

Mortgage conditions

The Bank of Spain, in its banking client portal, ensures that the conditions of the mortgages that have been signed with the bank They cannot be changed whatever the circumstances. This can be applied to the fee, the interest rate, the repayment period and the commissions.

Therefore, if a person was a Bankia customer and had a mortgage with a monthly installment of 400 euros to be paid in a repayment period of 30 years, they will continue to pay the same amount in the same period.

Beware of linked products

The conditions of the mortgages do not change, but the products that we have contracted to have bonuses may undergo modifications: home, life or payment protection insurance; pension plans, and credit or debit cards.

In addition, if the client has an account that he uses exclusively to pay the mortgage, it can also be changed. The new bank resulting from the merger You can charge a commission for the maintenance of the account, demand the use of the card, etc.

However, all changes to be made must be communicated in advance.

In short, the conditions of the mortgage relating to the installment, the interest rate, etc. they cannot get worse, since According to the Bank of Spain, the inherent characteristics of the loan cannot change.

However, all the links that we have contracted can be changed, because they are external products of an entity. We will have to pay attention to the new conditions and, if they are worse than those that were had at one time, compare with other banks and carry out a subrogation due to change of creditor.

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