English speaking clients of Spanish Banks have been systematically cheated for years (+Start your claim)

by Legal editorial team
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From around 2000 through to 2011 Spanish Banks made mortgage loans containing a 'floor clause' (in Spanish 'clausula suelo') which virtually no English Speaking borrower (nor many Spanish borrowers) could have understood the implications of.

In December 2016 the European Court of Justice ruled that mortgages containing a 'floor clause' are unlawful.

This has opened the door for an estimated 3 million borrowers including tens of thousands of British and Irish people with property in Spain to claim compensation.

A 'floor clause'is a condition within in a tracker mortgage agreement.

That clause requires the borrower to pay a 'minimum' interest rate EVEN IF the interest rate being tracked (such as the Euribor rate) is lower.

The Euribor rate in January 2008 for example was 4.12%, but by January 2009 had dropped to 2.35%, then in January 2010 was down to 0.37% - reaching zero in 2014. All the time however borrowers with 'floor clause'mortgages were still paying the minimum rate fixed into their agreements.

These 'floor clauses' have consequently resulted in people paying much more interest than they should have.

On a typical 30 year mortgage of €150,000 this could amount to €200 or more per month.

If you* have one of these mortgages you are entitled to re-claim the interest you have been wrongly charged - though it is likely to be a trickey process for a non native speaker and best managed professionally.

* Note - Applies if you have now or ever have had since 2008 and before now - or, if someone now dead in whose estate you have an iterest had a mortgage / loan from a Spanish Bank in the period 2008 to now.

The Spanish government has set up a process for claiming compensation without the need for court action to be taken.

Their process came into force on 21 January 2017.

In association with lawyers in Spain we arrange for your claim to be submitted under the the rules of that process.

Once a claim has been filed the rules specify that the bank has 3 months to pay the compensation claimed.

If the bank does not respond with an offer of payment of the claim, or fails to make a satisfactory offer within the 3 month period, then court action can be commenced.

We deal with the bulk of work involved on a No Win - No Fee basis.

There is a single up-front administrative charge of €179, which is for your benefit and immediate financial advantage, as we shall explain

Our No Win No Fee charge is of 20% of the compensation recovered less the admin fee.

If the compensation claim is unsuccessful no further charge is made.

If you think you have a mortgage that contains one of these 'floor clauses' then contact us and we will carry out a FREE assessment


Your claim has three steps.

We charge £179 for the assessment of your claim against the bank and for dealing with the necessary PRE CLAIM administrative processes.

Our associated lawyers in Spain, certified Abogados, then file your claim.

The bank offers a suitable refund - and the claim is settled - with you receiving 100%, less our 20% fee after deduction of the administration fee and plus 'VAT'.

Thus in the examole of a €150,000 30 year mortgage where there has been a €200 per month overcharged from (say) April 2010 through to March 2017 (7 years / 84 months) - you will benefit from an immediate reduction in your mortgage payments from the time we take on your case - which is greater in the first month that our €179 up front administration fee.

Then, if the claim is agreed, within 3 months you will receive €13,396.33. This being the €16,800 claim less our fee of 20% (with €179 returned from our fee) + 7% 'VAT' (called IGIC in the Canary Islands where our offices are situated.

In addition to which our lawyers will have analysed your morgage agreement and we would anticipate that they will conclude that a further sum can be obtained as a consequence of court action, relating to 3 other matters where the banks have usually taken unlawful advantage of English Speaking customers.

If that is so, and subject to the amounts involved we shall offer to pursue those additional amounts for you, involving court action, on an ongoing no win no fee basis of 30%

Related blogs

01 of 22 About Abusive mortgage clauses - Spanish Legal information

02 of 22 About The Great Spanish Mortgage Scandal!

03 of 22 About Spanish banks forced to pay billions in compensation to borrowers

04 of 22 About Making your claim - the process and cost

05 of 22 About Key information you require about your past and future borrowing from Spanish banks

06 of 22 About Dissapointment, that the floor clauses procedure leaves much to be desired

07 of 22 About Briefly, your right to reclaim

08 of 22 About Eaten alive - by abusive mortgage 'set up' costs.

09 of 22 About Floor-clauses - 'clausula suelo. - a history

10 of 22 About Lifetime Loans or Reverse Mortgages in Spain Explained

11 of 22 Advice to Struggling Mortgage Borrowers in Spain

12 of 22 A warning about Spanish Mortgage Loans: Beware of Abusive Clauses – 8th January 2012

13 of 22 An overview of Spanish Mortgage Loans: An Overview – 21st February 2012

14 of 22 About Bank Repossessions in Spain – 21st February 2014

15 of 22 About Spain's Bad Debtor’s List (‘Fichero de Morosos’) – 8th April 2014

16 of 22 About Spanish Creditors Pursuing Debts Abroad – 8th May 2014

17 of 22 Crucially Dación en Pago explained, or, How to Hand Back the Keys – 8th December 2014

18 of 22 Report about of how the European Court of Justice Slams Floor Clauses (‘Cláusulas Suelo’) – 27th December 2016

19 of 22 Warning, that buyers in Spain from the British Isles struggle to recover refunds due to them

20 of 22 Warning, that English speaking clients of Spanish Banks have been systematically cheated for years

21 of 22 Warning, that CJEU conclusively overturns the floor clauses

22 of 22 Warning, that EURIBOR - the promises at the heart of the Spanish Bank deception

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