Floor Clauses

If you have had a mortgage with a Spanish bank, keep reading.

The Central Bank of Spain has assigned 4,200 million to be reimbursed to mortgage holders who signed a “Floor Clause”. A Floor Clause basically means your bank put a fixed % of which your interest rate could never go below. Mortgages with floor clauses have been deemed unlawful to consumers and now the banks are being made to return all of the overpaid interest. So for example, in your mortgage you will see a claim that says something like, “your interest rate will never go higher than 15% but will never drop below 3%”. When interest rates dropped to 0,59% you would have still have been paying 2,41% more interest every month on your payments.

For every month you paid above the actual interest rate, because of this clause, you will now be reimbursed.

How much money are we talking about?

This depends on your mortgage. To give an example, a 20 year mortgage of 150,000€ may have paid as much as 200€ extra per month. If this was over the last 10 years, you would be in for a lump sum of 24,000€.

How can I check if I have a floor clause:

Grab your mortgage deed and jump to “clauses”. Here you will see a phrase not so different to this one “el tipo de interes no puede superar 15% pero no puede ser inferior a 3%”. Key words in this section Superior, Superar and Inferior.

If I have it what should I do:

Call us! Send us a copy of the deed and a copy of your monthly interest payments and we will file to get your money back. We do not charge anything until you win.

Why not go to my bank directly?

Your bank will offer you a flat fee buy-out to stop you from going to court. They may offer you up to 6,000€ with no regard for what you are actually owed. If it goes to court, they are obliged to pay you every penny you overpaid. Here’s the nice bit, you can go to your bank and request payment and if they do not pay everything you are owed – you can still take them to court!

We are here to help you so feel free to contact us using the below form or through our chat. 

    If you do not have a floor clause in your mortgage but do have IRPH, you can read the latest information on this here.

    www.nowinnofeespain.com/irph

    www.ithaca.es
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