Spain’s IRPH Mortgages to be revised by Europe?

Clients with mortgages linked to the IRPH index in Spain aim to refer their case to the European courts. They have been encouraged by the vote of two Supreme Court Magistrates who believe that the clause does not meet the required transparency control. On November 22, Spain’s Supreme Court ruled … [Read more...]

Spain’s Supreme Court keeps explaining Floor Clauses in Mortgage contracts: No agreement can eliminate effects of nullity

What is null and void cannot bring any effect or as the Roman’s used to say “Quod null est, nullum effectum producit” When a clause is null and void, it is null from day 1 of its existence and all effects derived from its inclusion on a contract, need to be reversed as they should have never … [Read more...]

Is the commission that banks charge for early repayment of mortgage debts legal?

Yes, it is legal, providing it respects maximum limits. It can of course be agreed that no commission is taken. Mortgages at variable rates signed before 04/27/2003: The maximum commission will be 1%, whether it is a cancellation per subrogation or not. Mortgages at variable rates signed … [Read more...]

The Mortgage Price Reference Index (IRPH)

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 … [Read more...]

A deposit contract can ruin your purchase

In many cases when clients come to us for conveyancing work, they have already signed the deposit contract. They have generally done it under the pressure of the agent or the seller. Bad start! Play your part in the negotiation (with the assistance of a good lawyer) in order to have … [Read more...]

Floor Clauses – Supreme Court confirms refund of ALL overpaid interest

Following the Sentence issued by the European Court of Justice in December 2016 regarding the retroactive effect of nullity of abusive Floor clauses (Cláusula Suelo), Spain’s Supreme Court has now ordered Spanish banks to refund their clients all the money they over-paid due to the Floor Clauses. … [Read more...]

Santander, BBVA, Caixa & Bankia are coordinating on a new mortgage deed standard template

Four of Spain’s biggest banks, Santander, BBVA, CaixaBank and Bankia, have taken account of the legal challenge regarding the floor clauses and have launched an image cleansing operation that will, among other aspects, implement a new generalized model of mortgage deeds in Spain. The objective is … [Read more...]

Questions and answers on extrajudicial (out of court) procedure for the return of overpaid interest due to floor clauses in Spanish Mortgages

How to claim a refund of overpaid interest due to floor clauses in Spanish Mortgages These steps need to be followed:1.- Claim to your bank office/branch 2.- The bank must send to the consumer the calculation of the amount to be returned, including interest or, where appropriate, the … [Read more...]

Remove the Floor Clause from your mortgage and claim a refund of overpaid interest

1. What is a Floor Clause? (Cláusula Suelo) Many property buyers in Spain were sold mortgages by Spanish Banks at a variable rate linked to the Euribor (the Eurozone base rate). However, a large number of those mortgages also included a 'floor' (Cláusula Suelo) which was normally set anywhere … [Read more...]

Claim a refund for fees imposed on you by the Bank when opening your Spanish Mortgage

IF YOU HAVE A MORTGAGE IN SPAIN YOU COULD CLAIM A REFUND FOR SOME OF THE FEES YOU PAID WHEN TAKING OUT THE MORTGAGE In December 2015, the Spanish Supreme Court ruled that mortgage clauses introduced by Banco Popular and BBVA that forced borrowers to pay all fees related to taking out the … [Read more...]

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