Many properties owners, with a Spanish mortgage, may be affected by the recent European court ruling, which dealt a huge blow to Spanish Banks, stating that lenders must reimburse customers who signed a mortgage agreement, that prevented them from benefiting from any steady drop in interest rates, by fixing a mínimum rate.
This decision comes at a time when the Spanish banking system is already struggling with the mounting impact of loan defaults, shrinking credit demand and tougher Money laundering rules.
The Bank of Spain estimates that this ruling could cost Spain’s banking sector over four billion euros (3.6 pounds), just four years after it received 41.4billion euros in European Union bailout funds.
Spain’s Supreme Court had ruled in May 2013 that so-called mortgage “floor clauses”, which impose a limit on how far mortgage interest rates can fall in line with the benchmark rate, were unfair as consumers had not been properly informed of the consequences. But the court said lenders did not have to reimburse clients for any excess interest payments, prior to this 2013 ruling.
However, on Wednesday, the European Court of Justice ruled that the proposed time limit onrefunds was illegal and unfair to the consumer.
If anyone finds themselves in this position, where they hold a Spanish mortgage and feel that they may have been overcharged interest, since taking out their loan, then they need to contact our office immediately, so that our expert solicitors can study each case individually. You could be entitled to thousands of euros.
FOR MORE INFORMATION SEND AN E-MAIL TO email@example.com, attaching a copy of your initial mortgage terms, if avaiable.
DON’T DELAY, BANKS HAVE HAD THEIR WAY FOR FAR TOO LONG.