Do you have a mortgage on your Spanish property?
Mortgages that have been contracted in the past almost all have a variable rate. As you may have read there is a lot of debate about the floor clause, in Spanish called the ‘Clausula suelo’. This floor clause is also known as the bottom-or tunnel clause. Spanish banks have set a minimum interest rate in the past so that the mortgage rates could not fall below a certain threshold. This way mortgage customers cannot fully benefit from low interest rates. Mortgage customers have protested and it seems that banks have to pay compensation. There has been a ruling from the European Court of Justice on 21 December 2016: the Spanish banks have to refund the overpaid mortgage rates.
Before all of this will be done, we recommend you not to accept alternative offers from your bank. Otherwise, you may use your right for compensation.
Are you entitled to receive compensation for overpaid mortgage interest in Spain?
Ask us for a Floor Clause Check. We will study your Spanish mortgage Deed to find out if you have signed for a minimum interest rate. We will make an approximate calculation of the overpaid amount and will indicate what steps need to be taken to get compensation.
Many foreigners in Spain do not know about this floor clause (bottom clause/tunnel clause). Please be well informed. We are happy to help you. Please contact us.