The clausula suelo is the most common claim against lenders as this clause would ensure that the interest rate you would pay would never go below a certain level which in most cases have been around the 3 – 5.5% mark. Given that interest rates since 2011 have plummeted and that the EURIBOR is actually below zero, this means that you would be paying an extremely high interest rate compared to current market rates.

For example, a client of ours took out a mortgage for 220.000 € back in 2007 with a floor clause of 3.5%, but with a margin above EURIBOR of 1.25. She had been paying 3.5% when she should have been paying 1.25% for the last 6 years.

We calculated that the client had been overcharged by 23.000 € but in the end she ended up recuperating more than 27.000 € given the amount of time it took for the lender to agree to settle out of court and the compensation interest of 4% the bank had to pay on top of the overcharges.

Now that the lender has agreed to take away the “miss-sold” floor clause, this clients’ new monthly mortgage payments are now calculated on the correct interest rate of 1.25% rather than the 3.5% meaning she will continue to save thousands of EUROS per year for the rest of the mortgage term that she signed up to.

This clause was deemed unfair by the European Court of Justice and therefore all mortgage contracts with this clause inserted will be successful with their claim.

Banks however are under no obligation to refund the amounts over charged and it is generally required to take legal action against the lender in question (no S) to ensure the refund is given and the correct amount return plus interest of 4% to 6% as compensation to the injured party.

If you have been approached by your mortgage company offering you a reduction in your interest rate to 2% or above, then you could still reclaim the previous overcharges that have been levied against you.

Chances of a successful outcome are very close to 100% but each case must be studied closely and we would welcome any enquires and will advise accordingly with no financial obligation from the client.

Clausula Suelo – Interest rate floor clause