As much as they insist otherwise, the reunification of mortgage-based debts is a useful and necessary product in certain cases, when the person has over-borrowed and needs to balance his monthly budget. We talked about it at Good Finance this week.
It is a mortgage on a house that allows us to balance our financial situation, usually for having assumed a previous over- indebtedness . A mortgage loan is requested that includes the outstanding mortgage debt (if any), outstanding card and other debts and personal loans.
Offered by the financial institutions
This operation in the times that we run should be normal and offered by the financial institutions themselves to solve the problems of their own customers. Nothing is further from reality. The lack of liquidity, the need to go well in the photo to capture money from international markets and a traditional aversion to this type of operations means that there are practically no financial institutions dedicated to it.
Some will say that it is normal, that bad customers nobody wants them. I disagree: the bank wants profitable customers , and a good refinance of a customer ” good people with problems ” is.
Just as many financial institutions have failed to discriminate against good payers from those who do not, they also do not bother to evaluate the “good people with problems” of compulsive defaulters.
Regulated the profession of financial intermediaries
The legislation, which usually goes behind reality and arrives at the wrong time, regulated the profession of financial intermediaries with Law 2/2009 . In this regulation, better or worse according to tastes, a series of obligations of financial intermediaries were contemplated, to try to turn them into true independent experts who advise the banking client and use their bargaining power to obtain cheaper mortgages and adapted to their needs . Among the measures aimed at professionalizing intermediation, the creation of a Public Registry was regulated.
Interestingly, this new record, which can be visited by anyone on the Consumer website, is now created. At a time when there is almost no business for financial institutions themselves, imagine for most intermediaries. Few are going to register, because few remain. What is clear is that from now on we can know if a financial intermediary complies with the law and how much and how it charges . And that is a lot. Basically, with this record we will know:
- That the documentation of the company and the informative brochure that you have to give us before hiring the services of a financial broker have been evaluated and approved.
- Know the prices, rates and expenses of the mortgages processed by this professional.
- The broker has a liability insurance or guarantee of 300,000 euros open to the public office.
Dedicated to protecting consumers
Some entities dedicated to protecting consumers say they do not consider these companies as a “recommended option . ” I think that this statement is a simplification of the reality that distorts it. Do you consider that banks are recommended companies? They are necessary , neither more nor less. Killing the messenger does not eliminate the need for people who want to balance a financial situation that involves unassumable monthly payments.
This recommendation is based more on ignorance of the work of financial intermediation than on anything else. There are bad professionals and there will be in all trades, the important thing is to stop them, as it is intended with the law. There are bad and good financial intermediaries, but that does not mean that intermediation is bad. Absolutely.
The reunification of debts from now on will be a highly professionalized mortgage advisory service or it will not be . And the bank has a lot to say, selecting the professionals who work with them and offering mortgage reunification products adapted to the client.