Expat buyers in Spain are scooping €50,000 and more after Fairway Lawyers crack compensation route in floor clause mortgages

Expat buyers in Spain are scooping €50,000 and more after Fairway Lawyers crack compensation route in floor clause mortgages

‘ABUSIVE’ MORTGAGE FLOOR CLAUSES SPAIN: Are you entitled to compensation plus interest – even if you have sold your property and paid off the mortgage? They had taken out the mortgage through Bankia in 2004. The villa in Mojacar, Almeria, was the home they had always dreamed of buying for their regular trips south for the weather. With its sizable garden and sea views, it was the perfect place to unwind during the hard winters of northern England. But the Thompsons, like so many buyers who took out mortgages in the happy days between 2002 and 2009, soon found out that their mortgage was not fairly setup. While initially the […]

Mortgage floor clauses in Spain: Key aspects of the Supreme Court ruling

Mortgage floor clauses in Spain: Key aspects of the Supreme Court ruling

Spain’s Supreme Court, in a Judgment of May 9, declared the nullity of the floor clauses in the mortgages of certain banking entities due to lack of transparency. What is a floor clause? When you go to a bank to apply for a mortgage loan, you tend to analyse what interest rate (fixed or variable) is the one that may be most convenient when paying the bank for the different instalments. In the fixed-rate, the same instalment will always be paid from month to month. In the variable rate, the instalments to be paid usually consist of the application of a reference index set by the European Central Bank (normally […]