Luis Prados Ramos



The business of Banks, described in a very simple way, consists of receiving deposits or other reimbursable funds from the public and granting loans or credits with the money received. The difference between what they pay and what they charge is their commercial margin. I say this because the banks cannot function without granting credits, since it is the essence of their business, because if they do not grant them there is no benefit.

After a season of credit restriction, and according to what they say buying public debt, it seems that the banks have launched a strong offensive to get active clients, which is totally legal, making offers of loans and credits that can be tricky . That trick is called bindings.

What are the links?

Well, very simple to offer an interest rate, which depends on the fulfillment of requirements unrelated to the loan. For example, it is said that the interest rate will be Euribor with a differential of 2 points, as long as the client has contracted a series of complementary services such as damage insurance for the mortgaged property, with a company from the same group. than the bank; have payroll, pension, unemployment insurance or social security payment domiciled; make annual net contributions to individual pension plans marketed by the entity for certain amounts; have contracted a mortgage loan amortization insurance marketed by the entity; minimum charges with credit card for certain amounts…

In relation to this way of marketing credits, which is not carried out by all entities, I would make the following reflections:

The complexity of the wording.

The first, the complexity of the wording, which violates the obligation of transparency that contracts subject to general contracting conditions must have, as are the majority of bank contracts, and which in some cases can be classified as clauses. illegible, ambiguous, obscure and incomprehensible.

Wouldn't it be much easier and more transparent to say that the interest rate will be, for example, the Euribor with a differential of 3 points, which can be reduced if certain requirements are met? Well, it seems that it is not the opinion of the minds destined to write the minutes of some banks, who prefer to say that the interest rate is the Euribor with a differential of 2 points, but only if they have contracted the products or services that the bank previously has determined, being subject to an increase otherwise.

Insufficient information.

The second is the insufficient information provided by some financial institutions, not only to their clients, but also to their own staff, in the banking contracting process.

More than once I have been surprised that the people who have come to sign a mortgage at my notary (which they always do by free choice since I am not the Head Notary of any Bank) tell me that this part of the The loan, that of the links, had not been explained to them before and that they only have news that the interest rate is what it really is, at the time the deed is signed, when it is explained by the Notary, and when it is already hard to pull back.

And it is also true that some office manager tells me that he is also the surprised one, and I do not doubt it, in which case they have to face and in a very unpleasant way the legal geniuses of those who are in the heights of the legal advice of the Banks.

In other words, the same mistakes that were made when marketing the floor clauses are being made again, which would require thinking about the entire banking contracting system, which as it exists does not serve what it was designed to do, which is consumer protection. , because the personalized information sheet, is still not delivered in advance and the right to examine the deed three days in advance, it is impossible to comply on many occasions, because the documentation arrives at the Notary, the same day of signing , sometimes with clients already in the signing room.

The low interest rate hook.

The third is that it is not convenient to be obsessed with obtaining the reduced interest rate, for example the Euribor with a differential of 2 points, if for this purpose certain requirements must be met, since compliance with them costs money.

I will give an example, from these recent days, with a firm that took a little longer than usual, because we stopped to do a cost simulation. It was a loan of 62,000 euros for 15 years, with an interest rate of Euribor with a spread of 2 points, with links, and Euribor with a spread of 3 points, without links.

The difference of one point in the interest rate meant a difference in the monthly payment of 30 euros, a total of 360 euros per year. But to obtain that type of interest, among other things, he had to take out home insurance that cost 500 euros per year, and that he did not need, take out a Pension Plan that he did not need with a minimum contribution of 500 euros per year, and be linked to the bank for up to extremes, that it would lose all kinds of offers from other entities, which in the long run could mean an increase in expenses. In other words, it was cheaper to pay more interest.

I end as always, noting that the best guarantee for consumers in financial operations is the advice of a chosen professional and not imposed.





  1. Dear Sir. In relation to the published article on the insurance linkages and the Euribor differential, I would like to know the following: I have contracted life and home insurance with the bank's insurer. I'm looking at other insurance companies (via tracker and going to offices) and I realize that my company is the most expensive. If I don't stay with the bank's insurer, they take away the differential. Is this legal? What legal precept protects me?

    1. In the mortgage deed itself, it must appear in a bonus section. Some entities do not want the bonuses to be stated in the deed, but this does not really affect you, since they would apply what is strictly stated in the deed.

      What they will take away from you are the differential bonuses. In other words, if you have a Euribor+2, which with bonuses stays at Euribor+1, then you will have Euribor+2

  2. Good afternoon Mr. Luis,
    We are looking at mortgages in different banking entities and the best option we have found is that of La Caixa. The only thing that does not quite fit us is that they tell us that in front of a notary we will sign an interest rate and in a private contract between La Caixa and us they will give us the bond bonuses that lower the interest rate 0.8 % .
    I have asked acquaintances who work in this entity and I have looked in different forums and apparently it is a common practice at La Caixa. Have you come across a case like this? We are concerned that since it is a private contract and not signed by a notary, the conditions may change during the life of the mortgage.
    Regards, and thank you very much,

    1. It is a very common practice at La Caixa. I personally don't understand why they do it.
      In any case, I will tell you that I have not known of any case of la Caixa not having complied.
      Remember to sign at the Notary of your choice, pay him a visit before signing and ask him to express all your doubts.

      Greetings and thanks for following

  3. Good morning Mr. Luis,

    Excuse me for asking you again but I would like to ask you a question. Next Tuesday we signed the sale of a house that was built in 1998, with which the certificate currently has expired. The real estate agency has told us that it has the sealed certificate of habitability certificate but not the certificate itself, which will arrive in 2 weeks. They have told us that with that we can sign. Could we have a problem?

    Regards, and thank you very much,

  4. Thank you very much for the reply,
    My doubt is that if there could be a problem that they do not give it to us and that we can no longer do anything, why have we signed the sale? It is assumed that if we have the visa certificate confirming that the house meets all the requirements to obtain the certificate, in principle they do not have to deny it to us, right? It is a flat that has been closed for 1 year and all supplies have been cut off.
    Thank you very much for your recommendations.

    1. What is presented is a certificate from the architect that the farm can obtain a certificate and the application. There should be no problems, but if you have doubts, delay the signing for a few days.

  5. Good morning. I have read your article about mortgage ties because we have a mortgage with land and we have not been able to eliminate it, so we have thought of subrogating our mortgage with another entity and changing from variable to fixed to relieve our economy a bit and gain peace of mind.

    They offer us fixed rates below 2% with links: payroll, home and life insurance and alarm. Right now we have all these products already contracted with that bank to which we want to take the mortgage.

    My question is that if I already know the premiums for these insurances, can the bank then increase them disproportionately since I can no longer waive them due to the link?

    And one last question because in my town there is only one notary and therefore it is not my choice or the Bank's, my mortgage is already a subrogation of that of the promoter, so... Am I acquiring all the obligations in terms of commissions of the entire string of scripts It is said that what is not said in the present deed is because you have to attend to what you put in the previous one! And of course, we already negotiated conditions to improve those of the promoter, and now supposedly to improve the ones we have... is that so?
    Thank you so much.

      1. Thank you very much, and I am sorry that I have not explained myself correctly. The first question was whether by linking life and home insurance to the mortgage, the bank can increase the premiums disproportionately year after year since we cannot change insurers.

        And the second question is about the surrogacy itself. Our current mortgage is subrogated to the home developer's mortgage, although the differential and some commissions were changed in the deed. Subrogation and novation was made.
        Now we are going to subrogate our current mortgage to another bank and we are going to change variable to fixed, thus eliminating the land and extending the term, but I understand that if new commissions are not agreed, the ones that will govern will be those already agreed in the current mortgage and even in the promoter???

        Thank you very much in advance and greetings.

        1. I think so but it is difficult for me to give an answer without seeing what is going to be signed. Anyway in writing it will say it, or should say it. Choose your notary and ask him all the questions.

  6. Good afternoon Mr. Luis,
    I asked you some questions about bindings a few months ago, thank you very much for your advice. We signed in May and this week they gave us the deeds. The bank has kept the original of the mortgage loan (which from what I have read is normal until the full payment of the mortgage is made) but it has also kept an original copy of the sale and has given us the other one. Is it usual to keep an original copy of the sale? It is a subrogation of the previous owner's mortgage, I don't know if that will have something to do with it.
    A greeting and thank you very much again

    1. Yes, what they have done to him is correct. When there is a sale with mortgage subrogation, two copies are usually made. And regarding the loan, only one for the creditor. I always mean authentic copies.

      Thank you very much for following us

  7. Good morning, I would like to ask you about my question about the enervation of mortgage subrogation. We have a mortgage proposal from another bank with a fixed interest of 2 % subject to 3 specific negotiated links that are payroll (0.40 bonus), home insurance (0.20 bonus) and alarm (0.20). The interest starts at 2.80 and would remain at 2 to 25 years.

    I know that the current bank can unnerve the subrogation if they match the offer. I have asked the new bank what the binding offer that they are going to show my current bank is going to be like because I am interested that they do not enervate and I would like them to put the real interest and the subsidized specifying the specific links and what bonus each one.
    For me, the cost of the bonds is very important when choosing a mortgage because it is a very important and determining condition to take into account.
    So I ask you if matching the offer implies matching all the negotiated conditions including the bindings or not.
    I do not want to find surprises if they enervate, that later they change the links to others that I do not need, such as life insurance or a pension plan... I change the mortgage under the negotiated conditions, otherwise I am not interested.

    Thank you very much for your attention.

  8. Good afternoon, I wanted to ask you a question, I have a mortgage with Lacaixa and I wanted to unlink the life insurance, mine and my wife's, which, comparing it, is more than double that with others, my question is if I can do it without losing the bonus of 0.20% 0 would lose all the bonus of 0.80 which also includes home insurance 0.20% and payroll and cards 0.40%. I hope you have understood me, I mean if the bonus is per product, or a whole package of products. I would be very grateful if you clarify the issue a bit since I do not understand the signed document of the bonuses well. Thank you

  9. Good morning Luis, in the writing there is nothing about the bonus for linked products, it is in a separate document signed by both parties that is basically this:
    Interest Rate Bonus Commitment
    We are pleased to inform you of the commitment of Caixabank, SA, hereinafter "la Caixa", to subsidize you, in the points that will be mentioned, the differential that is added to the interest rate contractually applicable to the Transaction up to a maximum of 0.80 points and from the entry into force of this commitment.
    to. 0.40 points,(1): who has an open deposit domiciled in "la Caixa", their salary or their pension.
    (2) three receipts that imply three debits in the account. (3) contracted a credit, debit or prepaid card marketed by la Caixa whose settlements are domiciled in a demand deposit open at "la Caixa".
    b. 0.20 points, for taking out and maintaining life insurance with Vida Caixa, SA or car insurance with SegurCaixa, SA.
    provided that, in the latter case, the policyholder is over 50 years of age.
    c. 0.20 points, for contracting and maintaining home insurance for the mortgaged property as security for the Transaction with SegurCaixa, SA
    VERIFICATION OF COMPLIANCE WITH THE LINK CONDITIONS. The holder authorizes "Ia Caixa" to request from the entities
    the banking, insurance or investment service providers referred to in this document, how much
    information is accurate to verify compliance with the link conditions established therein.
    ASSUMPTIONS THAT WOULD MAKE THE BONUS REMAIN WITHOUT EFFECT. This bonus commitment, to be fulfilled 'each and every
    one of the conditions established here, will be maintained until 07.01.2040.
    However, the bonus commitment will be without effect from the moment any of the following occurs:
    circumstances, without any prior notice:
    l.- If the Transaction is formalized under terms other than those initially approved by CAIXABANK,SA
    2.- If there occurs, from the date of signing this document, a breach of any of the obligations contracted with 'laCaixa”
    resulting from the Transaction or from any other contract formalized with "la Caixa", as well as if any of the
    the circumstances provided for in the expiration clause agreed in the Transaction.
    3.- If the holder(s) does not maintain, for any reason, the contract with “la Caixa” for the product or products indicated above to which a certain discount corresponds and under the same conditions;
    4.- If there is a change in the current reference index, whatever the Cause of the change.
    5.- If, after the transaction is formalized, any type of novation occurs for any reason.
    In the event that there is a floor clause in the Transaction, the application of this bonus commitment will apply, at most, also up to that limit. Likewise, the application of this bonus commitment may in no case result in the application of a negative differential/rate.
    This future rebate commitment and subsequent to the signing of the Transaction does not imply any novation or modification of the reference transaction, but rather a commitment by "la Caixa" not to require the holder to pay the subsidized interest, renouncing the perception of the same in case of certain circumstances.
    Thank you very much for your attention.

  10. Hi Luis, in 2005 we signed a deed for €100,000 with Euribor +1.15 with a floor of 2,95%. Having products (payroll, pension plans, amortization insurance, home insurance) reduced my fee. In 2014, given that the products did not benefit me, I gave up everything and they made me an offer, that if I kept the plans, the life insurance and the payroll, they would leave me at 2%. We accept. After two years struggling to withdraw land, they have "listened" to me and offer me Euribor + 1,098 and discounts of the type with payroll, amortization insurance and plans (which I currently have unemployed) with which I subtracted 0.45 or 0.55 depending on whether I accept home insurance. And a capital amortization of €600. I have asked for it to be €1800 of amortization and they are evaluating it. I have the option to file a complaint but two law firms do not recommend me since I made an agreement in 2014 acknowledging that I had land.
    Do you think the offer they propose is good? Thanks in advance.

    1. I interpret that he wants to "report the subject of the floor clause", but from what he tells me I am not able to understand his situation and if he really has it, and I don't know very well what he should assess.

      Personally I prefer not to have links, but a comparison requires knowing the cost of the other products. For example, bank insurance is very expensive...since the premium may be higher than 50% or 60%, than if you contract it by other means.

      1. The notary cost is very low compared to the overall cost of a sale. To know how much it will cost, we must know where the house is, since the tax cost depends on each autonomous community, and ranges between 7% and 10%, and if there is an additional mortgage.

        Do not worry so much about the cost of the Notary and go to the Notary to explain everything you need before signing anything.

  11. Hi guys. I really liked the stories you tell on your blog and the advice you give. I read an article about Bitcoins in El Digital de Asturias. Has anyone bought Bitcoins and can give their opinion? Thank you very much for your help. I have been dedicating myself to the stock market for a long time, but these new technologies surpass me 🙂

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