The Senate has increased the pressure on banks to obey the Supreme Court ruling and suppress the mortgage interest floor (cláusula suelo) whihc prevents many customers from benefitting from falling interest rates.
The Senate has approved a motion giving the Bank of Spain the final word on the decision over the elimination of the clause. Yesterday the Bank of Spain announced that all banks should obey the Supreme Court ruling and not apply the mortgage floor with immediate effect.
The Supreme Court ruled that all mortgage floors were declared “null and void” where there was a “lack of transparency.”
Any reader with a “cláusula suelo” on their mortgage agreement shoud approach their bank with a view to suppressing the clause which fixes the.lower rate of mortgage interest well above the level of the Euribor. If the bank refuses to suppress the clause readers are advised to seek advice from the Consumer Office.
