Question-10. How much will it cost?

We charge £179.00 administration fee for the assessment of your claim against the bank and for dealing with the necessary pre claim processes.
If for any reason we can not move forward with your claim we will return the administration fee.
Should the bank accept your claim and agree to full compensation within the three month period allotted by the courts, our fee will be 20% of the refunded amount, less £179.00 already paid.
Should the bank reject the claim or offer an unacceptable settlement figure and you wish us to involve the courts, subject to 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%.

Question-09. How do you manage my claim?

Having received your instructions and assessing your claim to be valid, we will contact your lender requesting all appropriate documentation.
Our lawyers will thoroughly examine the mortgage agreement, highlighting any and all “abusive” clauses.
We will calculate all interest overpayments made as a result of the “floor clauses” including interest that would have accrued on the overpaid amount had it remained in your account over the period of the mortgage.
We will assess the set up costs applicable to your mortgage in relationship to “floor clauses” and the jurisdiction in which it was drawn up.
We will scrutinise all clauses in the mortgage relating to insurance products to determine whether these were “abusive”.
We will prepare and submit your claim application instructing the bank to remove all abusive clauses from your agreement and reinstate it as of this date to reflect the true interest rate you should be paying. This will have the immediate effect of reducing the cost of your mortgage by lowering monthly payments and ensuring future savings. We will also claim full compensation relating to overpayment of interest, set up costs and insurance premiums.
We have successfully managed a number of claims so far on a no win no fee basis for victims of abusive “floor clauses” and our lawyers are in no doubt that group action has been an overwhelming factor in the level of compensation achieved on their behalf. We will manage your case from preliminary out-of-court negotiations through to settlement, if necessary attending court as your representatives. From initial consultation to final settlement, our dedicated staff will manage your claim professionally and diligently, ensuring a swift and effective outcome.

Question-08. Can I manage the claim myself?

While in theory it is possible to handle the claim yourself, realistically, the time sensitivity of claims and complex nature of the documentation which require an in depth knowledge of Spanish law and language make it difficult.
How many foreign borrowers will be able to calculate how much they've really been overcharged in interest payments due to hidden “Floor Clauses” and how many will be able to deal with the extra judicial process or even understand it given the language barrier in many cases.
These obstacles plus the ambiguity surrounding the claims themselves, leave consumers at a strong disadvantage against the banks who get to decide what settlement to offer based on their own criteria.
With no penalty for not offering full compensation, how many foreign borrowers are in a position to know if settlements are just or not?

Question-05. What might I be able to claim

In the first instance you would be seeking to have all “abusive” clauses removed from the mortgage contract, this will have the immediate effect of reducing your mortgage payment and ensure future savings.
Secondly you are entitled to reclaim all overpayments including interest, which could push compensation above €20,000 in many cases.
Thirdly you can apply to recover your set up costs and insurance premiums.

Queston-06. What is 'abusive' Insurance

Banks for years have been selling expensive insurance policies to those seeking a mortgage to purchase a property in Spain.
Most bank staff have pressured borrowers by insisting that the policy was a requisite to obtain the mortgage, with most unaware that they could shop around and find cheaper quotes from insurance companies.

Question-04. What are 'abusive' mortgage set up costs?

In December 2015 the Spanish Supreme court ruled that clauses in mortgage contracts used by some lenders, forcing borrowers to pay set up costs such as notary fee, administration expenses, land registry and stamp duty were “abusive” and therefore null and void. Now courts around Spain have started awarding borrowers refunds from banks, based on this ruling.
The ruling declares lenders themselves liable for set up costs as mortgages are an asset for lenders but a liability for borrowers so lenders have a greater interest in getting mortgages notorised and registered to protect their assets.
Under this revision existing borrowers should be able to claim back some or all of these costs.

Question-03. How can I tell if my mortgage has “Floor Clauses”

Mortgages taken out since 2013 are unlikely to include “floor clauses” but loans from before that may have, especially those signed between 2007 and 2009.
Mortgages taken out since 2013 are unlikely to include “floor clauses” but loans from before that may have, especially those signed between 2007 and 2009.
Since 2008 then it's likely your mortgage contains a “floor clause”.
They only relate to variable rate mortgages and it is difficult to tell if you are the victim of such a clause because they are often buried in complex figures and terms, which most foreign borrowers would struggle to understand, especially as they are in Spanish.

Question-02. Are “Floor Clauses” illegal?

While “floor clauses” themselves are not illegal, in December 2016 the European Court of Justice ruled that many mortgages containing a “floor clause” were unlawful.
The scandal was that these floor clauses were not adequately explained, or even not mentioned at all to borrowers, many of who did not know these clauses were buried in the small print of their mortgage contracts.
Foreign borrowers in particular were likely to be unaware of the existence and implications of floor clauses, thanks to language barriers and living outside Spain in many cases.

Question-01. What is a FLOOR CLAUSE?

A “floor clause” or “clausula suelo” in Spanish, is a clause contained in a tracker mortgage that requires the borrower to pay a minimum interest rate, even when the interest rate it is tracking (Euribor) is lower.
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.