Mortgages, Banks and ‘claúsula suelo’

Mortgages, Banks and “Cláusula Suelo”

The banking law and the credit world can be very complex for anyone and more for people who know the Spanish language.If you need to borrow money from a financial institution, this office offers you or mediation service with the bank in order to agree the best financial conditions for you. Likewise, if you cannot continue to pay your mortgage loan, we would negotiate what is known as payment or delivery of your home in exchange for the total cancellation of the loan.Nowadays, and thanks to a recent judgment of the Court of Justice of the European Union of 21 December 2016, the Spanish Courts ruled that banks should be obliged to pay back all «other» charges to the borrowers for the Minimum interest rate set in mortgage loan deeds, that is, what is popularly known as “Cláusula Suelo”. “Cláusula Suelo” are sanctioned as void for abusive.

In order to be entitled to the return of amounts due to a “Cláusula Suelo” it is essential that the borrower has purchased the loan for his own use, for example, his habitual residence and not for the business environment.

In fact, after this important European ruling our government would have approved the Royal Decree Law 1/2017 which regulates the procedure to be followed for the return of the “Cláusula Suelo”  so that the banks have 3 months to respond to the application of Repayment made by the borrower.

In addition to the declaration of nullity of the “Cláusula Suelo”, there is also a wide Law that claims to declare void for abusive clauses that require the borrowing party to cover notary, registration and management costs for the constitution of mortgage.

If you want to know if you suffer from “Cláusula Suelo” and have the right to refund amounts paid to the bank as well as the return of other mortgage expenses, do not hesitate to call us.