DOES YOUR MORTGAGE HAVE A FLOOR CLAUSE?
Reclaim overpaid interest charges on your Spanish Mortgage.
Is your mortgage affected by the Floor Clause?
Are you entitled to claim all the extra money you have paid?
What is the “Clausula Suelo” (Floor Clause)?
The Floor Clause is a minimum floor limit on your interest rate that may have been mis-sold to you on your Spanish mortgage.
Typically, your mortgage interest rate should align with that of the Euribor.
However, if you have a floor clause in your mortgage agreement, then your interest rate will have been capped.
According to a Sentence by the Court of Justice of the European Union, banks must return the amounts overpaid by clients because of this clause from the moment the clause began to affect the loan.
How much money are you entitled to claim?
The banks have to refund the overpaid amounts since the start of the loan.
The calculation of the amount to be returned is complex given that the claim filed includes:
-The nullity of the Floor Clause.
-Calculation and return of overpaid amounts from the mortgage signature.
-New calculation of the amortization table and update of pending amounts from the signature.
What do I have to do to recover all the overpaid monies?
The return of the amounts overpaid because of the Floor Clause is not automatic.
First you must claim it extrajudicially from the bank.
If you are not successful, then, move on to the courts.
Once you have calculated the amount that your are entitled to have returned, the first step is to direct a claim to the bank with which you signed the mortgage loan.
No win, no fee solicitors.
If you signed a variable rate mortgage loan between 2004 and 2012 with BBVA, Banco Popular, Caja Murcia, BMN, Bankia, Caixa Bank, Caja Mar, Kutxabank or Banco Sabadell, your chances of being one of those affected by a Floor Clause are pretty high.
You might have suspected it because the instalments you are paying for your loans have not fallen in recent years despite the drop in the Euribor.
Do you need legal assistance?
We strongly recommend you seek professional assistance.
Appoint legal representation to handle your claim as banks are not obliged to return money.
Should the bank refuse to:
a) Refund the wrongful payment,
b) Eliminate the Floor Clause or
c) Negotiate unfavourably against us by offering an agreement that does not foresee the elimination
In any of these cases, we will demand the refund of the money before the courts.
Our team of specialised solicitors will address a claim to the bank on your behalf in order to attempt to eliminate the Floor Clause provided in your mortgage loan and also recover any interest you have paid improperly since the loan was granted.
We will also claim mortgage expenses.
Our expert bankruptcy lawyers will also claim mortgage expenses:
• Notary's Invoices corresponding to the Deed of Mortgage Loan.
• Property valuation expenses.
• Invoice from the Property Registry.
• "Gestoría" expenses, as long as this agency’s intervention had been imposed by the bank.
Remember, everyone and anyone who has or has had a mortgage loan can claim these costs!
Whether your mortgage is active, you've sold your home, or you've made novations on the initial loan, you can still claim these expenses.
So, how do you know if there’s a Floor Clause in your mortgage deed?
The first thing for you to do is to check your mortgage deed.
You are looking for a clause that refers to variable interest. It tends to be the third clause in a section usually called "interest" or "interest rates".
Don’t look for the phrase "Floor clause" because banks usually refer to it under other terms such as "minimum interest rate", "variable interest rate", "limits on variation", "interest rate variability" or use phrases such as "the agreed interest rate may not be greater than X% or less than X%", "limitations on the lowering of the interest rate", etc.
You can easily check the interest rate applied in the mortgage receipts.
You will notice that between 2012 and 2016 there was a decrease in the rate since the Euribor has been going down for more than four years.
If the mortgage is of variable interest and you have not noticed any savings in the fees after each revision, it is most likely that you are affected by the Floor clauses.
Until when can I claim the Floor Clause and the Mortgage Expenses?
Given that these are what is known as abusive clauses and, therefore, null and void of any rights, there is no statute of limitations or expiration for the exercise of the corresponding actions.
That means that there is no time limit for you to start initiating legal proceedings against the financial institution in question.
For these purposes, the date when the loan deed containing the floor clause was signed or whether the loan was fully amortized is irrelevant.
In any of the scenarios, you are able to request the declaration of nullity of the clause and demand the return of the overpaid monies.