IRPH - Fairway Lawyers Costa del Sol

Decision day for the one million floor clause mortgages in Spain that may have paid an average of €25,000 too much

This week, finally, Spain’s Supreme Court will rule on mortgages that were linked to an IRPH rate, more than six months after Europe left it to the Spanish judges to rule on their legality or lack of transparency. While the standard Euribor rate has been negative since February 2016, the mortgages linked to the IRPH have been paying interest at around 2%. It is estimated that the average cost of overpaid interest payments to these clients could be around 25,000 euros each. The Supreme Court validated the use of the IRPH in 2017, but Court number 38 of Barcelona raised a preliminary question to Europe to enquire about the control […]

Oct 19

Do you have a mortgage in Spain? Find out if you are owed money by your bank…

‘Abusive’ IRPH floor clause mortgages in Spain: A Costa del Sol court ruling obliges the banks to return everything overcharged – before the national Supreme Court rules on the matter. A judgment of the Provincial Court of Malaga has declared the IRPH mortgage rate null for ‘lack of transparency’, replace it with Euribor and orders the banks to refund the difference between the cancelled rate and the new one plus interest. The recent ruling of the Court of Justice of the European Union (CJEU) regarding the IRPH rate mortgages in Spain is so clear that many provincial courts and hearings have decided not to wait for the Supreme Court to […]

Oct 11

Door opened for a million 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 […]

Oct 10

Top European court says homeowners in Spain can claim against banks if mortgage interest rates weren’t properly explained

The European Court of Justice has given the green light to Spanish courts to rule against lenders if mortgages were sold using the ‘more complicated’ IRPH rate rather than the more usual Euribor. Around one million mortgage holders could benefit from the top court’s ruling as the IRPH rate (an average of market rates) didn’t drop as dramatically as the Euribor in recent years. The ECJ has upheld earlier judgements that say using the IRPH is only valid if the different way of calculating it is clearly explained in the contract. Spanish courts will now have to decide on a case by case basis if compensation is due from banks. FIND OUT […]

Sep 21

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

Sep 21

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 […]

Tag Archives: IRPH