The minimum interest rate charged on a mortgage in Spain  (Cláusula suelo)

Below we briefly and simply explain everything concerning the minimum interest rate charge on a mortgage in Spain. The so known “Cláusula suelo”

The so known “Cláusula suelo”, in relation with the mortgage loan and the property purchase by mortgage, is a contractual clause stipulating a minimum payable to the bank although the ordinary interest rate that have been agreed with the financial institution is below the one that is agreed.

This clause only benefits the bank, due to as the lower is the interest rate, the client will have to pay less, but to establish this clause the banks ensure a minimum charge. With other words it does not allow the debtor to benefit from the drop of the index.

Also it is possible that the bank is including the so known “cláusula techo” (roof clause), which limits the maximum interests rate settle to the bank. Banks tends to set it above the usual market values so that this “roof clause” does not become effective, being abusive.

Although the application of these clauses may be in accordance with the law, in most cases they are unfair due to lack of transparency, or not reporting their presence and their consequences.

The “Cláusula suelo” applies to mortgages of variable interest rate (in Spain is often used as reference Euribor) are most of all mortgage loans made in Spain.

To find out if your mortgage in Spain contains the so known “Cláusula suelo”, you should check the mortgage loan deed  whether in the same appears expressions such as:

• “límite mínimo del tipo de interés del (…) %”.
• “límites a la variedad del tipo de interés”.
• “tipo de interés remunerado aplicable”.
• “tipo aplicable de interés ordinario”.
• “tipo de interés nominal”.
• “en ningún caso el tipo nominal anual podrá ser inferior al (…) %”.

Our firm performs a preliminary study of your Spanish mortgage and if you have a high legal feasibility, we will remove any of the so known “Cláusula suelo” of your Spanish mortgage loan, being able to benefit from the lowering of the interest rate and the refund of amounts over charged.

Do not hesitate to contact Arcos & Lamers Asociados, your team of lawyers and accountants in Marbella for any legal tax and accountancy issues in Spain.