The property development company “Grupo Labaro” are laying down tough requirements regarding the subrogation of mortgages for the purchase of properties in Costa Galera, Estepona. T
he entity offering the subrogation, “El Monte Caja de Ahorros”, are first of all using the IRPH, which is the least recommended index to calculate mortgages. By using this index (instead of the Euribor - reference index most frequently used to calculate mortgage credits), consumers will definitely end up paying at least €136 more per month and this figure can increase to €231 per month, depending on the circumstances.
In the event of purchasers not requiring a mortgage or if they wish to apply for one elsewhere, they are obliged to pay a cancellation fee which in fact, by law, should be paid by the developers. What is even more atrocious is that the normal fee for cancellation is 0.5% and in this case, they are charging 1%.
