Duped by the Floor Clause in mortgages?
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The floor clause, in relation to the mortgage loan and the purchase of a property with a variable-interest mortgage, is the name of a contractual clause that sets a minimum limit on the interest that will be applied in the installment even if the rate of interest drops. It is a clause that benefits the bank and harms the individual who has applied for the loan since when the rates fall or the interest is negative the clause prevents it from being transferred to the monthly fee.
In Spain, millions of people were duped when they signed their mortgage loan to buy their home. The bank that gave them the loan made them sign an abusive clause for which they would pay a minimum interest even if the market interest rates went down below that minimum.
Who can claim?
In principle, all those who signed a mortgage loan containing that floor clause. On average, for having this floor clause, people have paid over 10,000 Euros too much.
Why they can claim?
Because it is abusive and illegal that with this clause you have to pay interest above market rates.
What we need to claim
It is very simple: just provide us with a copy of your mortgage, and a repayment scheme of the loan.