In the world of mortgages, two clauses gain special prominence due to their influence on the fees that homeowners must pay: the known ceiling and floor clauses. In this article, we will discover their meaning, how they affect our mortgages, and the path to claim them, given recent court rulings.
The ceiling clause is a provision in variable mortgages that limits payable interest if the Euribor exceeds a certain level. On the other hand, the floor clause establishes a minimum interest to pay, regardless of how much the Euribor drops. These clauses can generate additional payments for consumers, who have the right to claim in certain cases when these clauses are considered abusive.
For a clause to be valid, it must be duly stipulated in the signed mortgage contract. Therefore, if you want to find out if your mortgage contains any of these clauses, you will need to examine this document. Remember that, before signing any contract, you must ensure that all conditions conform to what was agreed with the bank.
Following the rulings of the Supreme Court and the Court of Justice of the European Union (CJEU), floor clauses can be claimed as they are considered abusive. This claim contemplates two elements: the elimination of the floor clause and the reimbursement of the money that has been charged for it since the beginning of the loan.
However, this process does not always guarantee a positive response from the bank. Initially, you will need to directly request from your bank the corresponding reimbursement for this clause. In case of refusal, you will have to resort to the judicial route, where it will be determined if the bank adequately informed you at the time of signing the contract.
All mortgage holders with floor clauses can file a claim, since these have been declared abusive. The only conditions to claim are to be the holder of the mortgage and for this mortgage to include the corresponding floor clause in the contract.
If you have more questions about ceiling and floor clauses, or if you are interested in comparing the best mortgages, at LIVING SITGES we are at your disposal to answer your questions for free. Knowing and understanding these clauses well is essential for properly managing your mortgage and your personal finances.
Article by Living Sitges
