The banks will have to adopt the mortgage rules for other associated loans, known as multi-options, which mean lower commissions for paying off the capital owed (0.5%), for example, for people who have loans for building work or the purchase of furniture.

Financial institutions will have a maximum of one year to be able to increase the spread [banks’ profit margin] in contracts where the client is not complying with the packet of financial products and services agreed at the time, and which led them to grant that rate.

Finally, they will have to show the TAER, the Reviewed Annual Effective Rate, in mortgage simulations whenever a reduction of the spread is proposed to clients in exchange for the acquisition of or participation in other products.

Deco told the Lusa agency that it regarded these changes as “positive” and “interesting” for consumers, highlighting the importance of the TAER in the creation of transparency of costs for clients.

Contacted by the Lusa agency, the BES, the CGD, Santander Totta and the BPI confirmed that they were ready to go ahead with the changes yesterday; the exception was the BCP which said it did not need to apply the TAER because, according to an official source, it was not adopting the commercial strategy of cross selling.