The pillars of a responsible loan in the Law Regulating Real Estate Credit Contracts (Law 5/2019, March 15): lender transparency and assessment of borrower solvency

Abstract

So that the situation experienced in our country in recent years after the granting of real estate credits in an irresponsible way will not be repeated, it is necessary, on the one hand, to increase the information provided to the customer so that it can assess whether the banking product conforms to its interests and, on the other, to specify the duties of credit institutions when assessing the granting of a credit by analysing, among other data, the creditworthiness of the borrower. These have been the two main objectives of Law 5/2019, March 15, Regulatory of Real Estate Credit Contracts.