The Cabinet has approved the white paper aimed at regulating the mortgage market and financial system.

The vice-president of the Government, Maria Teresa Fernandez de la Vega, has assured that this project benefits "all the Spanish society: young people, families everybody".

According to de la Vega, the future Law "protects the consumer better and thier right to make decisions based on the real risk from products".

In addition, "it reinforces the independence of the regulatory organisations", lowers the price of the cancellation or change of the mortgage conditions and regulates re-mortgages.

The second vice-president and minister of Economy and Housing, Pedro Solbes, has said in Spain there are five million people who have mortgages; the measures contemplated in the text will introduce "more dynamism and agility" in the market.

Between those initiatives, the minister has mentioned the reduction of the commissions by the cancellation of mortgages, the reduction of the notarial and registry costs associated and the reinforcement of the mechanisms of transparency and protection to the banking client.

These forms of transparency, will allow the buyer to know, before signing the contract, "the conditions of each one of the mortgages" and to choose which is the best one.

Pedro Solbes also has indicated that the Maximal commission is reduced from 1% to 0.5% of cancellation of variable interest mortgages.

The new regulation in addition will give, "transparency and more independence possible of the organisations that give the credit" and make them avoid conflicts of interests.

Another one of the measures, described by Solbes as a "novel product", is the re-mortgage, that could be asked for by those older than 65 years.