It has been two years since a Supreme Court judgment declared null the ground clauses of mortgages, and yet there are still many banking entities that keep them active. It is expected that it will be in September when the commercial court number 11 of Madrid will rule on the cause that prosecutes the nullity or validity of the floor clauses of the mortgages.
The bank offers a reduction or elimination if you refuse to claim The bank fears the worst. But waiting for that final pronouncement more than two million mortgages in Spain maintain ground clause, according to calculate Adicae, the Association of Users of Banks, Savings, and Insurance. A floor clause is a minimum interest rate that the financial institution obliges us to pay, although the interest rate to which our loan is referenced is below that minimum- GADCapital.com.
Many consumers have not reported and what is worse, many do not even know that, as if it were a tick, their mortgage has a floor clause. According to the firm Yvancos & Abogados, many affected users are not even aware of it, because this type of clause appears camouflaged among other names.
Others find that the moment they identify it and contact the bank, it offers a temporary or definitive reduction or elimination of the clause. Of course, this offer hides an agreement whereby “the client waives any claim because of the floor clause”.
How to know if I have a floor clause?
The simplest option is to ask our entity if the mortgage loan has a floor clause. However, unfortunately, there is a possibility that the entity lies to us. For this reason, there is no choice but to carefully review the mortgage loan deed -not confuse this deed with the deed of sale of the property-, because the floor clause never comes with that name, but it is camouflaged with another name.
Some examples to name the floor clause in the contracts are:
- Limits to the application of the variable interest rate.
- Limits to variability.
- On the variable interest rate.
- Mortgage tunnel.
- Limitations on the lowering of the interest rate.
- Minimum interest rate.
- Interesting fork.
- Limitation of the interest rate.
- The agreed interest rate cannot be higher than “x” or lower than “y”
What to do once the floor clause is detected
Yvancos & Abogados explains that the first thing to do is talk to the bank to have it removed in a friendly way. It is also convenient to demand that we return the amounts charged more. Normally, before giving an answer the entity will ask us a certain margin of time to study the case. If finally the answer is negative, or we simply see how the weeks pass without the bank giving us any response, the next step is to sue the entity, because we should not forget that the floor clause is legal in Spain, and the bank does not have why to take it away if you do not want to unless a judge compels you.
While waiting for the ruling of that commercial court in Madrid, the chances of winning before the bank are many. For example, Bankia has lost 93% of the lawsuits it has had to face due to the mortgage clauses of its mortgages.