The Mortgage Price Reference Index (IRPH)

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The majority of mortgages signed in Spain have Euribor, a European index that regulates the interest rate of loans between banks, as a reference to mark the price of mortgages. But there are other less known and less widespread methods such as the Mortgage Price Reference Index (IRPH). Between 10 and 20% of the mortgages signed in Spain are under this index.

This mortgage reference has complete dependence on the decisions of the banks. That is, they can manipulate the IRPH practically at will and that is why Courts have considered them as abusive and therefore null and void.

As with floor clauses, once again the root problem lies in the lack of transparency and information. The banks and savings banks are accused of not correctly explaining what this IRPH indicator consisted of, showing only the alleged advantages.

Catalonia, the Valencian Community and Andalusia are where the highest percentage of these mortgages were granted.

You can contact us if you want a FREE revision of your mortgage deeds in regards to FLOOR clauses or IRPH index

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