Last Updated on 5th March 2025
Spanish Mortgage ‘Floor Clause’ Claims: Are you entitled to compensation?
Court ruling allows Brits with Spanish property to claim compensation
In December 2016 the European Court of Justice ruled that mortgages containing a ‘floor clause’ are unlawful. This has opened the door for thousands of British people with property in Spain to claim compensation.
What is a ‘floor clause’?
A ‘floor clause’ (known is Spain as a ‘clausula suelo’) is a clause contained in a tracker mortgage agreement. It requires the borrower to pay a minimum interest rate – even if the interest rate being tracked (such as the Euribor rate) is lower.
These floor clauses have resulted in people paying much more interest than they should have.
What can I claim?
If you have one of these mortgages you may be entitled to re-claim the interest you have been wrongly charged. On a mortgage of €150,000 this could amount to €200 or more per month.
How long will it take?
Once a claim has been filed the Scheme specifies that the bank has 3 months to pay the compensation due. If the bank does not respond or fails to make a satisfactory offer within the 3 month period court action can be commenced.
