Replacement cost vs. Real value
Based on this agreement, Gallego & Rivas has offered to study, free of charge, the documentation of owners who may be affected by a "floor clause" in their mortgages. At the end of this article, we will explain how those affected can access this service.
First of all: What is a “floor clause”? A mortgage is said to have a "floor clause" when, in a variable interest mortgage, there is a clause in the Mortgage Loan Deed that establishes that the interest on this mortgage cannot be less than a certain threshold.
In other words, in this case, the mortgage cannot benefit from a low interest rate and from the successive drops that may occur, since the minimum interest rate is "locked in" and no interest rate fixed below it can be applied. the one established in the «floor clause». For several years, the Euribor interest rate has been very low and these clauses have represented considerable losses for many clients.
The Supreme Court appeals to the economic convulsion that could represent for the banks the return of the total of the amounts unduly charged to the clients before May 9, 2013 since, taking into account that there are thousands of mortgages affected by a «floor clause », the banks would be forced to return billions of euros to their customers.
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By virtue of the provisions of Royal Decree-Law 1/2017 on urgent consumer protection measures in terms of floor clauses, Banco Santander has created the Floor Clauses Claims Unit to deal with claims that consumers may make in the scope of application of said Royal Decree-Law.
Once received at the Claims Unit, it will be studied and a decision will be made as to its legitimacy or inadmissibility. If it is not legitimate, the claimant will be informed of the reasons for the denial, ending the procedure.
Where appropriate, the claimant will be informed, indicating the amount of the refund, broken down and indicating the amount corresponding to interest. The claimant must communicate, within a maximum period of 15 days, his agreement or, where appropriate, his objections to the amount.
If they agree, the claimant must go to their Banco Santander branch or any other of the Bank, identifying themselves, expressing their agreement in writing with the proposal made by the Bank, signing below.
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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 that 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 in each monthly payment, since the interest you pay is probably higher than the official interest set by the European Central Bank .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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If you signed a variable-rate mortgage loan between 2004 and 2012 with BBVA, Banco Popular, Caja Murcia, BMN, Bankia, Caixa Bank, Caja Mar, Kutxabank or Banco Sabadell, your chances of being one of those affected by a Floor Clause are quite high.
Our team of specialized lawyers will address a claim to the bank on your behalf to try to eliminate the Floor Clause provided for in your mortgage loan and also recover the interest that you have unduly paid since the loan was granted.
Do not search for the phrase "Floor Clause" because banks often refer to it under other terms such as "minimum interest rate", "variable interest rate", "variation limits", "interest rate variability" or use phrases such as «the agreed interest rate may not be greater than X% nor less than X%», «limitations to the reduction of the interest rate», etc.
Until when can I claim the Floor Clause and the Mortgage Expenses? Since these are what are known as abusive clauses and, therefore, null and void, there is no prescription or expiration for the exercise of the corresponding actions.
