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The anatocism clause, or capitalisation of interest
Your bank charges interest on unpaid interest, or you are considering requesting capitalisation as part of a dispute. Anatocism - the interest capitalisation clause - is a mechanism with serious financial consequences, strictly governed by article 1343-2 of the French Civil Code and subject to specific conditions, any breach of which may render it null and void.
Indemnity for early repayment (ira) on a mortgage loan: legal regime and disputes
You want to repay your mortgage early, but your bank is demanding an early repayment penalty that you feel is excessive. Under the Consumer Code, this compensation is capped at six months' interest or 3 % of the outstanding capital - and certain contractual clauses allow it to be reduced or waived. We take a look at the legal conditions, the common miscalculations and the ways in which it can be contested.
Credit lawInterdependence of mortgage loan and financed contract: the resolutory condition
Your loan was refused after you signed the preliminary purchase agreement. Do you still have to buy? The law has established a legal interdependence between the contract of sale and the mortgage that finances it: if the mortgage is not obtained, the sale lapses, subject to strict conditions.
Credit lawDefinitions and scope of mortgage credit: the legal guide
Your bank makes your loan conditional on a formal offer, a cooling-off period and a suspensive condition: these are all mandatory rules that you cannot circumvent. The rules governing home loans, which stem from the Scrivener Act and were revised in 2016, govern each stage of the financing process. Here's what you need to know to secure your purchase.
Banking and finance lawRefusal of a mortgage loan: the essential role of the broker and the evidence required for the suspensive condition
Your bank has refused the loan and the vendor is contesting the validity of the suspensive condition. Proof of refusal depends on precise documents, and the role of the broker in compiling them is often underestimated. Understanding the obligations of each party will help you defend your deposit.
Mortgage loanHome loans taken out before 1 July 2016: which legal regime still applies?
Your home loan was signed before 1 July 2016: the reform resulting from Directive 2014/17/EU does not apply to you in full. The old consumer law continues to govern your contract, with specific rules on early repayment, acceleration and insurance.
Mortgage loanDefaults by mortgage lenders (Post-2016): what penalties?
Your bank has failed to meet its information or valuation obligations when granting your home loan. Since the Order of 25 March 2016, there have been penalties for such failings: interest forfeiture, contractual liability and even nullity. Knowing the applicable penalties will enable you to defend your rights effectively against the lending institution.
Mortgage loanPre-contractual information in mortgages: FISE and the duty to warn (post-2016)
Before signing a mortgage offer, your bank is legally obliged to provide you with a European Standardised Information Sheet (ESIS) and to assess your ability to bear the cost of the loan. These obligations, which stem from Directive 2014/17/EU and have been transposed since 2016, are often poorly respected - and breaching them can result in the loss of the right to contractual interest. What you should demand of your lending institution before committing yourself.
Banking and finance lawThe 3-month Euribor and your loan: understanding its impact and your rights
Your variable-rate loan is indexed to the 3-month Euribor and your monthly repayments have increased without any clear explanation from your bank. This interbank index imposes specific obligations on the lending institution in terms of information and contractual transparency. Here's what you can demand and the remedies available if these obligations have not been met.
Mortgage loanLoan insurance: issues and developments
Loan insurance can account for up to 30 % of the total cost of your home loan - yet it is often hastily negotiated under pressure from the bank. Several successive reforms have strengthened your rights in this area: easier comparison, annual cancellation, then cancellation at any time since 2022.
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