A duplex conversion BEFORE/AFTER the operation and agreement
The Supreme Court of Justice of the European Union (CJEU) sentenced Spanish banks last December to return all the money overcharged by the floor clauses, eliminating the non-retroactivity set by the Supreme Court (TS) in May 2013 and that it limited the return of what was overcharged as of that same date. This judgment considers that limiting retroactivity is contrary to community law, which in practice has meant recognizing total retroactivity from the signing of the loan.
In recent days, the Government of Spain has decided to postpone for another week the royal decree law that articulates an extrajudicial system to return the money unduly charged for non-transparent floor clauses. This fact means postponing the publication of the new mortgage law. In December, the Government already decided to postpone the approval of a code of good practices to facilitate the return of what is overcharged by the floor clauses.
– The first thing we must do is look for and carefully read the deed of our mortgage. It is usually recognized in headings with titles such as “variable interest application limits”, “variability limit” or “variable interest rate”. It is also very important to pay attention to the historical evolution of the mortgage interest rate. If since 2009 you have not noticed a notable drop in your mortgage payment or it has remained fixed, it is very likely that you have a floor clause.
Mortgage in Spain to buy a property – Quick guide!
(22-11-2018, 09:08 AM)Spitfire58 Wrote: (22-11-2018, 06:59 AM)Sam Wrote: (19-11-2018, 03:44 PM)Raye Wrote: Been trying to get a refund from Banco Popular and they have refused on the grounds that it is not my first home.
I think you can ask any attorney/application for a no win no fee agreement. The worst thing they can say is "No." If you get in touch with a few offices I am sure that at least one will answer you with a positive response. Don't forget to provide as many details as possible so they can see if your case will make them money or not.
They should make the payment automatically, that would be lovely. Unfortunately, the banks don't know how to do it. The only automatic process they have managed to learn to this day is to take your money.
Wood price comparison | $10,21 in 2019 is now in 2021
A Floor Clause, also known as a 'Floor Clause' or 'Mortgage Floor', is simply a clause that has been inserted in variable-rate mortgage contracts in Spain over the last 20 years and affects the interest rate to be paid on the mortgage.
In most Spanish variable rate mortgages, the interest rate to be paid is calculated using the reference rate of the Euro Interbank Offered Rate (Euribor). If the reference interest increases, then the mortgage interest also increases, in the same way, if the EURIBOR decreases, then the interest payment will decrease.
However, the insertion of the floor clause in the mortgage contract means that the mortgage holders do not fully benefit from the drop in the EURIBOR, since there will be a minimum interest rate to be paid on the mortgage (also known as the "floor" The level of the floor will depend on the bank that grants the mortgage and the moment in which it has been contracted, but it is typical to see floors of 3 to 4%.
The Supreme Court ruled that the floor clauses were null and void as abusive, among other reasons due to their lack of transparency. It is understood that there has been transparency if the information was clear and the client had the capacity to understand its content and consequences[3].
Common and proper nouns | parts of speech
In most Spanish mortgages, the interest rate to be paid is calculated by reference to the EURIBOR or the IRPH. If this interest rate increases, the interest on the mortgage also increases, similarly, if it decreases, the interest payments will decrease. This is also known as a "variable rate mortgage", since the interest to be paid on the mortgage varies with the EURIBOR or the IRPH.
However, the insertion of the Floor Clause in the mortgage contract means that the mortgage holders do not fully benefit from the fall in the interest rate, since there will be a minimum rate, or floor, of interest to be paid on the mortgage. The level of the minimum clause will depend on the bank that grants the mortgage and the date on which it was contracted, but it is common for the minimum rates to be between 3,00 and 4,00%.
This means that if you have a variable rate mortgage with EURIBOR and a floor set at 4%, when the EURIBOR falls below 4%, you end up paying 4% interest on your mortgage. As the EURIBOR is currently negative, at -0,15%, you are overpaying interest on your mortgage for the difference between the minimum rate and the current EURIBOR. Over time, this could represent thousands of additional euros in interest payments.
