Floor Clauses in Spanish Mortgages
GB Abogados has seen a steady increase in the number of clients requesting assistance with an existing mortgage in Spain.
What is a floor clause?
Over a number of years, it was typical for a variable mortgage in Spain to be granted with a minimum rate of interest.
This is now commonly referred to as a floor clause or clausula suelo in Spanish.
Many mortgages in Spain have a variable rate with a spread above Euribor. The current level of Euribor is extremely low, meaning that mortgage holders should benefit from much lower monthly repayments.
The rising problem:
However, in many mortgage terms, the lowest that the interest rate can fall is around 4%. Without the clause, a client could be paying as little as 1%.
There have been some recent landmark judgements against mortgage lenders which stipulate that the floor clauses incorporated into many mortgages are abusive.
Do you have a floor clause?
GB Abogados are helping many clients in negotiating with the banks to remove the floor clause and obtaining a refund of monies overpaid.
GB Abogados offer a no-obligation appraisal of mortgage agreements for new clients.
If you believe that you have a floor clause please don´t hesitate to contact us today. We will review your situation and provide advice on your options.
