IRPH

Have you 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. This has 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 that 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 but to give you an example, a mortgage as little as 150,000€ could be looking at having overpaid 200€ more a month since you started paying your mortgage…if this was, lets say, 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 “Tercera Bis” (third section). 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!

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