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Floor clause

1. How do I know if my mortgage has a ‘floor clause’?
   

   If you have a variable rate mortgage and your instalments have barely changed since 2008, it is more than likely that you have a ‘floor clause’. You can find out by checking the deed for your mortgage loan. It would appear under “limits to interest rate variance”.

   You can send us your mortgage loan deed with our form. It will take you less than 99 seconds. We will analyse the unfair terms of your mortgage and file a claim for all of them. This way, we make sure you are getting the maximum amount you are entitled to.

2. Why can I claim ‘floor clauses’?
   

   The problem stems from the fact that many banks don’t provide clear information on the existence of this clause, or its implications. This practice is punishable by law. If a clause does not pass the transparency test, a judge would classify it as unfair, and therefore null and void. If this is the case, you can claim.

3. What can I hope to achieve with my claim?
   

   The aim is to obtain a favourable ruling to annul this ‘floor clause’ in your mortgage if you are still paying back the amounts owed. You can reclaim your money back even if you have already paid it off.

4. Can I still file my claim if I have already signed an agreement with the bank?
   

   Yes. If the judge declares the ‘floor clause’ to be null and void, you can claim even if you have signed an agreement. The same rule applies if you have reached an out-of-court settlement and you are not satisfied with the offer received. Or if they have refused to reimburse your money. In such cases, you can always resort to the courts, to make a claim for everything you are entitled to.

5. Is my claim a sure win?
   

   A very high percentage of these types of claims are accepted. However, it is difficult to predict exactly how the procedure will end.

   What we can say is that we are very confident in what we do, and in how we do it. That’s why we are committed to our no No Win No Fee policy. In addition, during the process, you can always include our legal expenses insurance. This way you’ll have nothing to worry about in the unlikely event that your claim is unsuccessful.

6. What does the success of my claim depend on?
   

   It depends on the judge’s decision in regard to the transparency test of the affected clause. If the judge considers that it does not pass said test, it will be declared unfair, and therefore null and void. This means that you would get your money back.

   According to the Spanish Supreme Court, the clause cannot pass the transparency test if you do not have a qualified financial operator profile and:

   1. You have not been thoroughly informed of the implications of
      the ‘floor clause’.
   2. You have not received simulations for different scenarios on
      how the ‘floor clause’ can affect you.
   3. You have not been given clear information beforehand. Nor
      have they compared your loan with other types of mortgages offered
      by the bank.
   4. The clause is located amidst an overwhelming amount of
      information that keeps it camouflaged.

7. Can I claim the ‘floor clause’ as well as mortgage costs?
   

   Yes, in fact, you can combine both in your claim. This would increase the amount of money to be reimbursed.

   You can send us your mortgage loan deed with our form. It will take you less than 99 seconds. We will analyse the unfair terms of your mortgage and file a claim for all of them. This way, we make sure you are getting the maximum amount you are entitled to.

8. What documentation will I need to file my claim?
   

   All you have to do is fill out our form, with the information we ask from you. You will reach a point where we will ask you to attach the following documentation if you have it. If not, we will let you know how to obtain it during the process.

   1. The deed for the mortgage loan
   2. Your last mortgage payment slip
   3. Any communication you have exchanged with your bank
   4. The agreement with the bank
   5. The repayment table

   If you also want to reclaim your mortgage costs, we will also need:

   1. The appraisal certificate for the property
   2. The invoice for the land registry.
   3. The invoice for the notary public
   4. The invoice for any agency fees

9. How to differentiate a mortgage loan deed from a title deed?
   

   In all mortgage claims, the principal document that must be provided is the deed of the mortgage loan. It is important not to confuse it with the title deed.

   To identify the mortgage loan deed, we should look at the title of the document itself. This usually refers to “Escritura de préstamo hipotecario”.

   Here is an example of a mortgage loan deed.

   The title deed can be identified in the same way. The title refers to “Escritura de Compraventa”. Here is an example. And we like to stress the fact that this is not the document we need.

   Note: there are deeds entitled as “Escritura de compraventa con garantía hipotecaria, subrogación, novación o ampliación”. These deeds, although they contain the word “compraventa” in the title, would also be valid to claim certain abusive mortgage clauses. Here is an example.