You may be one of the many people with a property in Spain who took out a mortgage with Banca March, one of the country’s best-known financial institutions, to pay for it.
But were you ripped off by the presence of a clause forcing you to pay potentially many thousands more than you should have done? If so, you may still be suffering the ill effects right now.
A short introduction to the infamous ‘floor clause’
Whatever you call it – a ground clause, floor clause, soil clause or simply its Spanish name of ‘clausula suelo’ – there’s no question that it has caused a lot of fuss among homeowners in the country in recent years, but not in a good way.
If you took out a mortgage as long ago as before the late 2000s financial crash that had an interest rate supposedly tied to the Euribor, as the Euribor’s rate began to decline to below 2% in 2009 and even lower in the years afterwards, you may have wondered why your mortgage payments weren’t dropping as well.
The answer is because of the presence of the clausula suelo. It sets a minimum interest rate that those with an affected mortgage must pay – meaning that if the interest rate the mortgage is tracking falls below that stated minimum, the person paying the loan doesn’t get to benefit from the lower rate.
Is there anything I can do about my Banca March floor clause?
While the Supreme Court has not, technically speaking, declared interest floor clauses to be illegal, it has ruled that they must comply with certain requirements, including that they must have been clearly explained to those taking out the loan.
Inevitably, many Spanish banks have fallen foul of this ruling. Furthermore, with the European Court of Justice having recently made a further shock ruling about the amount needing to be paid in compensation to those with such a clause in their mortgages, it’s not surprising that Banca March has announced it will set more money aside for any claims.
In a very encouraging development for those contemplating or currently pursuing Banca March bank claims, the Mallorcan institution said it had reserved an additional €20 million for 2016 to be potentially paid out to affected borrowers. So, if you are a Banca March customer and you think you have a clausula suelo in your mortgage contract, now is the time to act.
It really couldn’t be easier. Just contact our experts here at Rapido Claims now, and you could have the money that you are entitled to in just a few weeks. Plus, our 100% win rate and ‘no win no fee’ policy will give you the confidence that we aren’t just bluffing – you really will get the windfall that you deserve.
What is a Clausula Suelo or Floor Clause?
It is a clause in a Spanish tracker mortgage agreement that requires you to pay a minimum interest rate, even when the interest rate that the mortgage is tracking – such as the Euribor – is lower.
This means that you could be paying thousands of Euros more than you should be, and the Supreme Court has agreed that many such clauses can be considered abusive.