Minimum Interest Rates in your Mortgage Contract!

Millions of families across Spain, including a good number of expats, have contracted mortgages with interest rate floor clauses (“cláusulas suelo”, as they are commonly called in Spain), which prevented them from taking advantage of the very low mortgage interest rates which have occurred due to the decline in the Euribor rates since the financial crisis started in 2008 (The Euribor is currently at 0,32%).

The Supreme Court declared in a ruling issued on the 9th May 2013 that the minimum interest clause applied by several defendant banks were null and void because transparency requirements had not been met.

The rationale behind such a ruling is that all consumers who purchase a property or take out a loan secured against their home have to be adequately informed and protected against the risks by the bank.

In the wake of such ruling, a great deal of new rulings issued by minor mercantile courts across Spain have declared not only that such interest rate floor clauses must be removed, but also that the claimants should be compensated through the reimbursement of the monies paid in excess since the inception of the mortgage.

However, despite the high rate of success of such claims, many victims of irresponsible lending are reluctant to start legal action because they cannot afford it.

MARTINEZ-ECHEVARRIA ABOGADOS offers Urbytus clients the chance to claim the difference, taking on all legal costs, namely: Power of Attorney, Lawyer´s fee, Judicial Tax and Court Agent´s fee.

If the Law Firm, in all likelihood, wins the case, the client will hand over to the Law Firm the 20% of the monies awarded by the court as compensation together with the right to pursue the investment in legal expenses against the respondent bank.

If during the court proceedings the client wants to reach an agreement with the financial institution, it has nevertheless to pay to the Law Firm the 20% of the monies recovered with a minimum of 1.700 euros if the settlement is reached before the pre-hearing and 2.200 euros if the agreement is reached afterwards.  It is up to the client to decide whether to finish the issue in amicable terms or continue until the ruling is issued.

We remain at your disposal should you have further questions with regard to this offer of legal services.