Resisting the temptation to entitle this news ítem: “And pigs can fly!!” the two main political parties have agreed a pact whereby the banks must inform customers how to claim their money back if they have a “clausula suelo” in their mortgage agreement.
Our advice remains the same. If you have a mortgage, have not agreed to a fixed rate and have not benefitted from the interest rate reductions over recent years your mortgage contract probably contains a “clausula suelo” ( a floor under which the interest rate doesn´t falll).
This has been ruled illegal and the banks have been ordered to pay ALL the money paid under this clause,
They have three months to do so.
This is not open to negotiation! If the clause was inserted in your mortgage contract without your agreement. ie. you agreed to a fixed rate, the bank MUST pay the monies back.
Warning: some mortgage contracts for shorter periods, usually for older customers, include a large percentage of capital in the monthly repayments. Obviously, “capital” payments are not subject to interest and thus it may appear your mortgage payments are not falling with the interest rate changes. However, they should have reduced, if only by a little, over the last few years.
Also if your mortgage interest rate is only reviewed once or twice a year , instead of monthly, you may not have noticed the interest rate change.
OMIC, the Consumer Advice Centre in the Town Hall will advise you free of charge. You will need to take your mortgage contract and an interpreter. However, we are speaking about large sums of money which can be reclaimed, so don´t miss out.
If you have your notary bill for when you signed for the mortgage take that along as well, as there has also been a ruling concerning notaries fees and substantial sums some banks charged for arranging a mortgage. These can also be reclaimed.
If one, either, or both of the above apply to you get in contact with your bank immediately. If you are British and were unable to understand the mortgage contract at the time you signed it and you a “clausual suelo” you are clearly entitled to a refund as the banks have to prove you were aware of the clause in order to avoid paying refunds.
