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Spain's Supreme Court validates mortgage opening fees up to 1.5% provided they are transparent, giving banks a clear pricing ceiling

Executive summary: The Spanish Supreme Court ruled that mortgage opening commissions are lawful when they are transparent and capped at 1.5% of the loan amount. The ruling provides a definitive legal framework for a common banking fee, influencing pricing strategies of Spanish lenders and consumer cost expectations.

Who is involved: Spanish Supreme Court (El Supremo), major Spanish banks (notably Bankinter and Unicaja), mortgage borrowers and consumer‑protection bodies.

Likely next: Banks will adjust fee disclosures to meet the transparency requirement; consumer groups may challenge specific fee levels; the government could codify the 1.5% cap into legislation.

The Supreme Court ruled that banks may charge a mortgage opening commission if the clause is clear and the fee does not exceed the statistical average of 1.5%. Only Bankinter and Unicaja currently advertise such fees in their public offers. The decision removes legal uncertainty for lenders and sets a benchmark for fee transparency.

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