Mortgage Floor Clause
Recover your money back since the mortgage started
For many years, thousands of consumers paid higher mortgage instalments because of this clause, often without having been properly informed of its consequences. Following several judicial decisions, the Court of Justice of the European Union confirmed the right of consumers to claim the return of all amounts overpaid since the start of the mortgage loan.
At Pellicer & Heredia, we specialize in banking and financial law, assisting clients affected by mortgage floor clauses in claiming against banks and recovering the money paid unfairly.
Do you need legal assistance to claim a mortgage floor clause in Spain?
At Pellicer & Heredia, we provide expert legal advice for clients affected by mortgage floor clauses. Our team reviews your mortgage deed, analyses the interest applied by the bank, and evaluates whether the clause may be considered abusive
What is a mortgage floor clause?
A mortgage floor clause is a provision included in many mortgage contracts that establishes a minimum interest rate, regardless of the evolution of the reference index. This means that even if the Euribor decreases significantly, the interest applied to the mortgage cannot fall below the limit set by the bank. In many cases, this clause was included without sufficient transparency or information, which has led courts to declare it unfair and therefore null and void.
What amounts can be recovered?
Overpaid interest
You may claim the return of all the interest paid in excess due to the application of the floor clause since the signing of the mortgage.
Mortgage setup expenses
It may also be possible to recover certain mortgage formalisation costs, including:
- Notary fees
- Administrative (gestoría) costs
- Property valuation costs
- Certain associated taxes
For example, for a mortgage of €150,000, these expenses may amount to approximately €3,000.
Legal interest
In addition to the amounts paid unfairly, you may also claim legal interest on the recovered amounts.