How Del Canto Chambers Can Help You
If you entered into a mortgage in Spain – whether with a Spanish or international bank – and that loan was offered as a multi-currency mortgage (for example, denominated in Swiss francs or Japanese yen on a Spanish property), you may now face unexpected financial and legal consequences.
The problem
On paper, these products looked like a smart way to reduce interest costs. In practice, thousands of borrowers ended up paying far more than anticipated, with monthly instalments rising sharply and outstanding balances exceeding the original loan amount, even after years of repayment.
Banks promoted these loans as financial planning tools or as a means of raising capital for investment products often sold by the same institutions. What they rarely explained were the risks. When the euro weakened against the Swiss franc or yen, borrowers suddenly owed more than they had borrowed. Matters worsened where the borrowed funds were channelled into complex financial products disguised as savings policies, which often generated heavy losses.
Why these contracts may be unlawful
Spanish and EU courts have repeatedly ruled that many of these loans were abusive and unlawful, due to a lack of transparency and consumer protection. Common unfair terms include:
- Exchange rate manipulation: Banks reserving the right to set or apply exchange rates at their discretion.
- Unilateral changes: The ability to alter the loan currency or conditions without borrower consent.
- Concealed capital risk: Failure to warn that debt could increase if exchange rates moved adversely.
- Other abusive clauses: Excessive default interest, early termination rights, disproportionate borrower costs, and assignment of the debt without notice.
Strong legal grounds
- Consumer protection law: Under EU and Spanish legislation, unfair terms can be declared void.
- Judicial precedents: Both the Court of Justice of the EU and the Spanish Supreme Court have held that banks must act in good faith and with full transparency.
What success could mean for you
- Your mortgage recalculated as if it had always been in euros.
- Refund of excess payments caused by currency fluctuations, plus interest.
- A significant reduction of the outstanding debt.
- Removal of other unfair clauses.
How Del Canto Chambers can assist
- Free assessment: We review your mortgage contract and payment history at no cost.
- Formal claim: We prepare and send a detailed legal demand to the bank.
- Negotiation first: Our aim is to secure settlement without court proceedings where possible.
- Litigation if required: If necessary, we represent you before the Spanish courts with tested arguments.
- Cross-border support: Based in London and Spain, we handle translation, evidence and enforcement seamlessly for international clients.Act without delay
The longer you wait, the harder it becomes to recover your losses. Documents may be lost and financial damage increases over time.
Contact Del Canto Chambers today for a free review of your Spanish mortgage.
Antonio Aguilera
Director, Litigation Department
