‘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 […]
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 […]