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Fairway Lawyers are based in Marbella on the Costa del Sol where senior partner, Diego Echavarria has been practising since 2001. The company deals mainly with British expats buying and selling properties in the Malaga Province. In 2016, the company identified a clause in many mortgages of British clients which added illegal interest charges. Since then, they have specialised in claims against the banks who have sold products with what is known as a ‘floor clause’ (claúsula suelo).

The clause was inserted into variable-rate mortgages sold by Spanish banks between 2001- 2013 and affects the interest rate. For most Spanish variable rate mortgages, the interest rate is linked to the Euro Interbank Offered Rate (Euribor). If the rate increases, then the interest on the mortgage also increases. Likewise, if Euribor decreases, then interest payments fall.

However, the insertion of the floor clause means that mortgage holders do not fully benefit from the fall in the Euribor rate as there will be a minimum rate of interest payable on the mortgage. The level of the floor depends on the bank providing the mortgage and when the mortgage was taken out. But it is typically set at 3 to 4 per cent. These clauses were deemed illegal by Spanish and European courts.

If you sold a property with a Spanish mortgage between 2017 and 2021 you can still make a claim. The average pay out is €15,000 and the success rate 99.99 per cent.

Please let our team check if your mortgage has the floor clause inserted. We operate on a no win, no fee basis.

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Think your mortgage has a floor clause? Get in contact with the team at Fairway Lawyers and they’ll be able to give you immediate advice. Contact diego@fairwaylawyers.com or call 0034 952 771 150 or 0034 606 307 885.