Supreme Court discusses nullifying mortgage ground clauses

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    • March 20, 2013 at 4:36 am #57358
      GarySFBCN
      Participant

      It looks like the practice of including a ‘floor’ interest rate may be eliminated:

      The Supreme Court discusses nullifying ‘ground clauses’ in mortgages

      Court, headed by one of the most experienced and qualified magistrates court, Juan Antonio Xiol, has called …to urge the cancellation of such clauses to be abusive.

      In Spanish:

      http://www.publico.es/452259/el-supremo-debate-anular-las-clausulas-suelo-de-las-hipotecas

      This could affect me: I got ‘gouged’ with a 4.25% ‘floor’ rate. It was the ONLY mortgage available at the time, and I thought of paying off within 10 years, instead of the full 20, to alleviate the damage to my wallet.

    • March 20, 2013 at 8:56 am #116337
      marios
      Participant

      I’m on Euribor plus 1.25% so from next month my Int rate will be about 1.82% (.57% plus 1.25%)some of the current rates I see IRPH Cajas etc are scandalous

    • March 20, 2013 at 4:44 pm #116354
      Anonymous
      Participant

      We are euribor +1% but depends on the rate in May to come into effect from July onwards. When the bank was merged with another caja the new manager refused to believe we didn’t have a fixed minimum rate (which makes me assume that everyone with a CajaGranada mortgage had abusive minimum clauses then).

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