Spanish Floor Clauses to calculate the interest due were incorporated by some banks into mortgage agreements and set a minimum interest rate to be paid in monthly instalments, irrespective of the market interest rates. These Floor Clauses enabled the banks to guarantee minimum payments, even if the Euribor (European benchmark interest rate) fell below this minimum interest rate.

However, in 2016 the European Union Supreme Tribunal declared that the Spanish banks must repay the excessive interest paid by customers affected by bank floor clauses dating from when the mortgage was first signed. So, what does this mean for you?

• any person who signed a Spanish mortgage between 2001 and 2012, whose mortgage payments did not track the Euribor interest rate can claim
• the interest paid to the bank is calculated as if the floor clause never existed and any excess interest that was paid to the bank, since the mortgage was first signed, can be claimed back.
• You can also claim associated mortgage expenses such as notary fees, tax etc

We are experienced in acting for people whose mortgages included Spanish Bank Floor clauses, negotiating with the banks to get the maximum amount due. Be careful if you try to approach your bank directly, without legal representation, as many of the banks offer a reduced settlement, and often only pay the full amount due if threatened with legal action.