Precondition, Postcondition and True Condition in Real
We firmly believe that most of the "threshold clauses" reflected in mortgage contracts are unfair and bank customers are harmed and penalized for their lack of financial knowledge. It is convenient to have expert lawyers help you so that they can negotiate with the bank on your behalf, and they can even sue the bank to save you money on each monthly installment, since the interest you pay is probably higher than the official interest set by the Central Bank European. If you contact a law firm to claim your mortgage expenses, you will have the opportunity to review your deeds to make sure if there is a minimum mortgage rate. If so, you can ask the Bank to return the money it is taking from you because of that abusive clause.
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The floor clause is found in your mortgage deed. In Spanish, this document is called “Deed of Mortgage Loan”. The document was signed before a notary public at the same time the house was purchased.
Once the mortgage deed is signed before the notary, the bank takes it to the property registry to register it. Once the mortgage deed is registered, the bank receives it and must be picked up by the client or their lawyer.
You can get a list of the payments made since you signed the mortgage on the bank's website or at the branch where you have the mortgage. If the interest rate has dropped and your mortgage has not, you probably have a mortgage floor clause.
You have to submit a form to your bank with a copy of the mortgage deed and the latest receipt confirming the monthly mortgage payment. In addition, you can submit an estimate of overpayments. The bank is not required to respond to you, but it usually responds to its customers by approving or denying the claim. If the bank does not cancel your floor clause of the mortgage and returns the money you have paid in excess, you have to initiate a legal claim.
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More and more people realize that they have a floor clause in their homes and decide to claim it from their bank. This decision took on special relevance since last December the Court of Justice of the European Union (CJEU) issued the ruling that said that the amounts collected in mortgage contracts since 2009, when these clauses began to be incorporated, should be returned.
As the vast majority of Spanish mortgages are in line with the Euribor -a fluctuating rate-, the banks decided to incorporate the floor clause that would allow the interest not to fall below a minimum, even if the Euribor to which the mortgages referred did. .
Consulting a floor clause calculator is a fundamental step to avoid complications when claiming the floor clause from the bank. It allows knowing in advance the amount that can be claimed from the entity.
There is the possibility of calculating it through the calculator of the floor clause of the Organization of Consumers and Users (OCU), in which the amount can be detailed by entering some data: initial capital, date of signing of the mortgage contract, applicable differential or initial interest rate, among others.
WHAT IS A LOCKOUT PERIOD?
If you want to claim your “floor clause”, FreeClaim can help you. Our attorneys can help eliminate floral clauses included in mortgage or loan contracts. Said clauses will be considered void and the bank will have to return the undue amounts collected in application of said clause.
The so-called "floor clauses" prevent the interest rate from falling below a reference minimum, even if the Euribor (or another banking index) is below it. Currently, the Euribor is quite low, so if your mortgage has this type of abusive clauses, you may not benefit from the drop in the index.
To find out if your mortgage contract includes a floor clause, you must review the public deed of your mortgage. If it says that in any case the interest rate can be less than a fixed percentage, it is a floor clause.
In addition, you can initiate a claim on the floor clause if the interest rate that appears on your last bank statement is not equal to the Euribor (or the rate of your particular bank) plus the differential rate that you have agreed with the bank.
