What is a mortgage clause Floor?
Buying a home involves often a mortgage with a financial institution. It is a very important operation, and therefore, before signing anything, it should search, compare and, above all, read the fine print of a contract that used to be durable.
Ground clause is called the limit set some entities to decreases in interest rates, usually the Euribor, when it comes to mortgages. That is, if rates go up a lot, the customer has to deal with these increases, but as much as down, never apply this reduction exceeded the established floor.
Clause is a limitation Floor Minimum Interest Rate which directly affects the amount you pay for your mortgage and included in the document to formalize it.
How to remove Clause floor your mortgage?
First we must consider that not all clauses are ilegalesl soil. But what is at issue in these terms is not its legality, but whether they can be unfair terms, and establishing a real soil near (about 3.5%), and secondly ROOFING that could considered totally unrealistic (from 10% to 15%).
So if you have a ground clause set at 3.5% and the European Central Bank lowers interest at 0.75% you will still pay an interest rate of 3.5% however much you have sold a Euribor + spread.
However, if the interest oficiale go up (unlikely) clause above its roof, you do not pay more than the amount established by this point.
Negotiate with financial institutions has always been difficult for the consumer and of course they will look after their interests. But it is impossible, so we have specialized in banking law. We offer specialized legal advice and representation to those affected by bad banking practices. In this series of legal actions in order to recover as much money for our clients.
Our team of experts will negotiate with the bank for its ground clause in their favor and even interpondremos lawsuit against since the interest you pay will probably be much higher than the official interest of the money provided by the European Central Bank.
Although the Supreme Court ruled against ground clauses, does not imply the automatic disappearance of a mortgage soil and subsequent decline in Euribor benefit, but if the client wants you to withdraw the ground clauses must embark on a painful process to demonstrate that, if the soil is illegal.
For starters, the mortgaged land that currently have a mortgage on your contract should be clear that the statement does not change anything by itself.
Thus, the judgment is not ground clauses outlawing of all mortgages, only in cases in which there has been a lack of transparency in the market. No question, much less outlawed, the validity of the ground clause itself must be the customer who denounces, but the judge will have the final say.