The chic apartment in a good location or the family house in the countryside

The chic apartment in a good location or the family house in the countryside

real estate costs a lot of money. Buyers usually take out a loan. Sometimes they take over with it. To prevent this from happening so quickly, the European Parliament passed new rules on consumer protection in Strasbourg on Tuesday. They should apply from April 2015, when the EU member states have formally adopted the compromise.


Picture: Terraced houses

What exactly has the EU decided?

Consumers should in future be fully informed about risks and costs before concluding a real estate loan. What is new here is that the bank must inform the customer exactly about the future interest and repayment obligations. Suppliers must also use a single European fact sheet to help shoppers compare loans better.

At the same time, customers should be able to repay loans ahead of schedule. In Germany, construction loans usually have a long interest rate. Who wants to pay the sum before the end of the agreed term, for which it is often expensive. These compensation payments are limited – but remain allowed.

What does this mean for consumers in Germany?

Above all, consumers can profit in this country from the duty to inform. “Today you are usually not informed about how rising interest rates affect your financing,” explains Max Herbst of the FMH financial consulting in Frankfurt. “Banks often act as if today’s interest rate will persist within the next 40 years.” But those who borrow in the current low-interest phase must adjust to higher interest rates in the future.

For example, a loan of 100,000 euros with a term of 10 years currently costs an average of 2.79 percent interest. The monthly rate in this case is around 396 euros with a repayment of 2 percent. If the customer has to pay 6 percent interest after expiry of the fixed interest rate, his monthly rate rises to around 604 euros.

What is the point of a real estate loan?

In Germany, real estate loans are usually given with a fixed term. The longer the term, the higher the interest rate. What sounds unfavorable, can still be worthwhile. Although you pay with a term of 15 years, about 0.5 percent more than 10 years, but at the same time there is a longer interest rate security and thus more time to take care of a follow-up financing. Customers should also agree to special repayment and redemption changes in writing.


A businesswoman protests for 75 days before Public Works against defaults in the works of the AVE

A businesswoman protests for 75 days before Public Works against defaults in the works of the AVE

He assures that UTE Santa Ana owes him 780,000 euros and that he now lives on “humanitarian aid”

A 27-year-old Cordoba businesswoman and roads, canals and ports engineer, María Jesús Horcas, has been running for 75 days in front of the doors of the Ministry of Public Works of the Junta de Andalucía to demand that she be paid “what she has worked for ” His company was a subcontractor of a UTE (Temporary Union of Companies) in charge of carrying out the works of a section of the Seville-Granada AVE.

María Jesús owns the company Procasur 2005 SL and since November 4 she travels every day from Córdoba to Seville to demonstrate with her father, sometimes sleeping in her van to denounce her situation. The objective of his protest is to get him to receive the Minister of Public Works, Josefina Cruz, to explain his case, since, according to the businesswoman, UTE Santa Ana owes a total of 780,000 euros. In addition, he thinks that the Junta de Andalucía “as owner” must intervene as civil liability subsidiary.


Speaking to Europa Press Televisión, María Jesús explained that the works in which her company worked as subcontractor of the UTE Santa Ana, formed by Bruesa Rail and Corsan Corvián, are those of the Seville-Granada AVE, “specifically in the section of Fuente de Piedra to Santa Ana “, commissioned by the Public Works Council.

In this sense, he reported that his work consisted of “earth movements” and that his company, Procasur 2005, signed a contract with the UTE for one year, “from March 2009 to February 2010”. But the UTE Santa Ana rescinded the contract five months before the agreement, a situation that claims to have led to ruin.

“It all started because they wanted me to sign a document saying that both parties agreed to stop the excavations and I said no, because I had a lot of work ahead and my contract was one year,” the engineer said anguished .

In addition, it has denounced that the UTE Santa Ana owes them the months of October and November of 2009 and the supplement of transport from May of that same year, which amounts to a total of 780,000 euros. “Without paying that, I kept paying my employees and creditors, but when you do not have an income and you continue to pay, there comes a time when you run out of liquidity, without money, and some of my creditors denounced me and then the foreclosures and I had to stop working. “

For all this, this Cordovan businesswoman went to the Ministry of Public Works to “ask for help,” even going to sleep in his van in front of the doors of this department of the Junta de Andalucía to denounce his situation. There he was advised to sue the Santa Ana UTE. María Jesús denounced, and since then she is requesting an interview with the counselor to explain her case, without receiving a response.

“humanitarian aid”

“We were a well-to-do family and now we live on the humanitarian aid offered by a nun’s school in Cordoba and the food that our relatives buy for us” lamented this young businesswoman.

In addition, he assured that his family is going through “very bad” due to the situation they are in, which he describes as “total injustice”. He added that what he does every day before the doors of Public Works is “how to ask for alms, when you have worked for them and you have earned them, and all because they do not pay you”.

Finally, María Jesús has assured that she will continue to demonstrate before Public Works until she is paid. “I do not have anything because everything has been taken from me,” the young businesswoman concluded.


Ute Santa Ana

For its part a spokesman of the UTE Santa Ana has assured Europa Press Television that rescinded the contract with Procasur 2005 SL for “repeated disobedience of the orders of the head of works, the head of production and the manager of work, facts of which even a notary took minutes. “

In addition, the UTE has ensured that “they overloaded the trucks and went through the work at an excessive speed, putting at risk the occupational health of the rest of the people”. Regarding the debt, UTE Santa Ana has said that it owes Procasur 2005 SL “around 200,000 euros” and not 780,000 as María Jesús Horcas assures.

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