If you have taken out a mortgage with a Spanish Bank in the past 25 years, there is a very good chance you could be eligible to get a mortgage compensation.

Most of the mortgages taken out before 2013 contain several abusive clauses, like for example, the so-called floor clause.

WHAT EXACTLY HAPPENED?

First of all, the Spanish Supreme Court has ruled that the interest rate floor clause can be declared abusive if the client/consumer was not duly informed about its content and implications, in a clear, transparent and comprehensive way, before signing the mortgage contract at the Notary.

In September 2013, the Supreme Court clarified a judgment delivered in May 2013, declaring floor clauses null and void if they breach the levels of transparency demanded by the European Consumer Directive. The problem is that if the floor clause is too high and the Euribor rate goes down, no matter how low the Euribor might be, the mortgage payments will never go down below the threshold of the floor clause.

HOW TO PROCEED?

To find out if your mortgage contains an abusive clause (floor clause or similar) you will need to ask your bank for a copy of the mortgage contract (mortgage deed) signed before the Notary. If the bank refuses to give a copy to you, remember that you can actually ask for a certified copy or a “copia simple” directly from the Notary where you signed the Title Deed for acquisition of the house. Once that you have obtained the copy, please forward it to us and we will review the mortgage for free.

LEXLAND CAN HELP

In conclusion, if you think that your mortgage might be affected by abusive null and void clauses, as a preliminary step, please do not hesitate to contact us for further advice. Never sign any new novation agreement or a brand new mortgage with the bank without consulting with a legal professional expert like Lexland. A simple consultation will save you from a lot of hazardous legal problems later on!