Mortgages, News

Floor Clauses in Spanish Mortgages

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.

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