Door opened for a million ‘floor clause’ mortgages in Spain on ‘abusive’ IRPH rate to be cancelled

Door opened for a million ‘floor clause’ mortgages in Spain on ‘abusive’ IRPH rate to be cancelled

One of the top legal advisers in the European Union has said that about one million mortgages sold in Spain on a different type of rate to the standard Euribor can be subject to judicial review. The rate being questioned is known as the IRPH (mortgage loan reference index) and is an alternative offered to customers of banks when buying their property. It is a national average of the cost of mortgages over a period up to three years, meaning it is less variable than the standard Euribor. However, homeowners complain that while Euribor rates plummeted in recent years, the different way of calculating IRPH keeps their loans higher. Many […]

Spanish mortgage victory leaves British couple with €15,000 in their pockets thanks to bank compensation payout

Spanish mortgage victory leaves British couple with €15,000 in their pockets thanks to bank compensation payout

Once upon a time a happy English couple (let’s call them the Smiths) who worked very hard in Birmingham all their lives dreamed of buying a property in Spain. One day they decided they had ‘had enough of rain, beer and fish and chips’ and decided to come to Spain to change it for sun, sangria and paella. But they were not 100% sure about it… it was, after all, a big move in their lives, but you only live once, so they booked their flights to Spain. They fell in love with Spain at first glance and their people and agreed to go ahead with the purchase of a […]

European Court wades into Spain’s mortgage crisis

European Court wades into Spain’s mortgage crisis

With a ruling that left both banks and consumers claiming victory, Europe’s highest court waded into a legal dispute in March over allegedly unfair home mortgage plans Spanish banks used during a housing boom that imploded with the 2008 financial crisis. The European Court of Justice found that clauses Spanish banks used in adjustable interest rate mortgages may have been abusive. But it stopped short of issuing a blanket rejection of the mortgages and told Spanish courts to examine them on a case-by-case basis to see if consumers clearly understood what they were signing up for. Some housing advocates called the ruling a win in their long-running campaign against banks […]

Family reunification for foreigners in Spain

Family reunification for foreigners in Spain

Spanish immigration law recognises the right of foreigners legally resident in Spain to reunite their families. This article summarises the general conditions required to exercise this right. Who can reunite their family members? Foreigners who have been living legally in Spain for a year and have obtained authorisation to stay at least one more year. To reunite ascendants, the foreigner must be a longterm resident in the country. Those who can also reunite their family, without previous legal residence, include: holders of an EU long-term residence permit in another Member State of the European Union, holders of an EU blue card, or beneficiaries of the special regime for researchers. Which family […]

How can I get legal documents if I am illegally in Spain?

How can I get legal documents if I am illegally in Spain?

If you are in Spain without any type of permission, you could obtain it through ‘Arraigo’ permits based on extraordinary circumstances without going out of Spain. It is a benefit offered by our legislation to foreigners who meet certain conditions in order to acquire a residence and work permit, among them, the most important reasons are the following: 1. Social ties 2. Economic ties 3. Family ties 4. International protection and humanitarian reasons 1. PERMIT BASED ON SOCIAL TIES According to Spanish legislation any foreigner illegally established as a resident in Spain, can apply for a residence and work permit. The required periods of time are different according to the […]