Spanish Mortgage ‘Floor Clause’ Claims: Are you entitled to compensation?
Court ruling allows Brits with Spanish property to claim compensation
In December 2016 the European Court of Justice ruled that mortgages containing a ‘floor clause’ are unlawful. This has opened the door for thousands of British people with property in Spain to claim compensation.
What is a ‘floor clause’?
A ‘floor clause’ (known is Spain as a ‘clausula suelo’) is a clause contained in a tracker mortgage agreement. It requires the borrower to pay a minimum interest rate – even if the interest rate being tracked (such as the Euribor rate) is lower.
These floor clauses have resulted in people paying much more interest than they should have.
What can I claim?
If you have one of these mortgages you are entitled to re-claim the interest you have been wrongly charged. On a mortgage of €150,000 this could amount to €200 or more per month.
How do I make a claim?
the Spanish government has set up a scheme for claiming compensation without the need for court action to be taken. The scheme came into force on 21 January 2017. In association with lawyers in Spain we can arrange for your claim to be submitted under the Scheme.
How long will it take?
Once a claim has been filed the Scheme specifies that the bank has 3 months to pay the compensation due. If the bank does not respond or fails to make a satisfactory offer within the 3 month period court action can be commenced.
How much will it cost?
We deal with these claims on a No Win – No Fee basis. Our charges are 20% of the compensation recovered. If the compensation claim is unsuccessful no charge is made.
What is the benefit of dealing with us?
We are Solicitors, fully insured and regulated in England and Wales by the Solicitors Regulation Authority. You will therefore have the peace of mind that comes from knowing your claim is in safe hands
Free case assessment
If you think you have a mortgage that contains one of these ‘floor clauses’ then contact us and we will carry out a FREE assessment
Call us on 0808 139 1595 or email us at [email protected]