10,000 British buyers who purchased property in Spain could be entitled to refunds that could reach thousands of euros.
 

Most don’t even know about it, and those who do have a difficult time claiming what they might be entitled to.

We are an international law firm with certified Spanish lawyers specialized in property finance claims.

 



International law firm

We are an international law firm with certified Spanish lawyers with over 15 years of experience in Spanish property related matters

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We handle your complaint in the Spanish court, from preliminary out-of-court negotiations through to judgment if necessary
We contact your bank
We attend court as your legal representatives
We send any financial award to your bank account in the UK

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If you have a Spanish mortgage there may well be a floor clause in it, in which case you could claim against your bank or lender. Floor clauses in variable-rate mortgages provide that customers continue to pay a specified minimum interest, the so-called floor, even if the base rate falls well below that level. In April, a court in Madrid ruled that these clauses were illegal. This means you can now go to court to apply for a refund of overpaid interest and to have future repayments reduced.  
We specialise in floor clauses mortgage claims.

Thousands of people have already claimed. Can you afford not to? 
There is still time to get your money back!

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Floor clauses explained

A floor clause is a clause included in many Spanish mortgages where the lender sets a limit on how low the interest rate can fall. Most of these are tied to the Euro interbank rate, known as Euribor, but usually capped at around 3 per cent of Euribor. So, regardless of how low Euribor falls, mortgage customers would continue to pay interest at the fixed minimum rate. These clauses have now been ruled illegal by a Spanish court.
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Floor clauses are found in some mortgage contracts and state that the interest payable shall never be less than a certain percentage. This so-called ‘floor’ on the mortgage means repayments on the mortgage will never be less than that minimum amount, even if the rate on which repayments are indexed has fallen to lower levels.
If you have not noticed any decline in your mortgage payments since 2008, or if it has remained stable, it is very likely that your mortgage contains a floor clause.
The Bank of Spain and Spanish law on mortgages allow the application of floor clauses, but these must in writing, both in the binding mortgage offer and in the deeds. It must also be clearly explained so that the client knows precisely what he/she is signing.
It is often difficult to know if your loan agreement contains a floor clause because banks do not always explain it in detail at the time you sign the agreement. Even if you are told about a floor clause in the agreement, it can be difficult to find it, as it is often hidden within the schedule of figures or terms, which makes it virtually impossible to locate.
If you cannot locate the floor clause in the deeds (this is a frequent occurrence when the buyer is subrogated in the developer’s mortgage), you can find the floor rate in one of the bank statements detailing the payments in your mortgage account. If the interest rate shown does not match the sum of the Euribor + the differential you had agreed to, that’s your floor. The court can order for overpaid interest to be refunded and for the floor to be removed going forward.
Depending on the court where the claim is submitted and on the number of individuals included in the claim, it usually takes between 7 and 24 months. It can be extended for another 12 months if the bank appeals.

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We pride ourselves on offering a cost-effective service and results-driven advice and representation. Our working practice is built around internet and telephone communication, which enables us to keep overheads to a minimum – savings that we pass on to our clients. We work on the principle that a good solicitor is not just there to help you when things go wrong - it is also our job to put in place legal safeguards and contracts that ensure you do not encounter problems in the first place. 

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This is our promise to you when you choose Del Canto Chambers as your legal representative:

  • Access to a team of highly qualified and experienced legal professionals.
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