On 21st December 2016 the European Court of Justice ruled that these abusive bank clauses known as ‘Floor Clauses’ were unlawful and banks are liable to pay back full refunds to customers.
Many people who have bought property in Spain with Spanish mortgages will have been subject to a ‘Floor Clause’, which sets a minimum interest rate. The official Euribor rate dropped drastically in 2009 and failed to recover. Unfortunately however, customers were unable to take advantage of these lower rates and were stuck with paying overly inflated monthly interest payments.
Following the European Court ruling customers are now able to claim back the overpaid interest from day one which in many cases is over 10,000 euros. They may also be entitled to claim back the set up costs of the mortgage.
Victoria has already been successful in claiming back overpaid interest for clients who hold or have held Spanish mortgages “Many banks in Spain are deciding to settle as the prospect of success of any court action following the European ruling is very slim, especially with regards to British clients who are much more unlikely to have understood the implications of the floor clause on signing up to their mortgage.”
If you think you might have a mortgage containing this clause and are interested in claiming a refund from your bank in Spain please contact Victoria Westhead for a free review of your mortgage deed.
To get in touch with Victoria, please contact one of the Partners
