We have a bank account and mortgage with Solbank/Banco Sabadell in Fuerteventura.
Having read a number of discussion threads on forums based on the island, it would appear that there has been a court decision recently in relation to floor limits (or 'cláusulas suelo') applied by many of the spanish banks to their mortgage products.
Very simply, most mortgages appear to be linked to the Euribor, which is currently very low, (our mortgage should be Euribor +0.8%) - however, many mortgages also have a floor limit, preventing it from going any lower, for example, than 3%. A recent decision in the spanish courts would suggest that floor limits are illegal, although Solbank are suggesting to me that they are still waiting for a final judgement (they may or may nor be).
The impression I get is that the spanish banks won't have to refund overpayments, but it's not clear if any of them are implementing the judgement.
I'm going to ask my local solicitor for a view - if anyone has similar experiences I would welcome comments.
Having read a number of discussion threads on forums based on the island, it would appear that there has been a court decision recently in relation to floor limits (or 'cláusulas suelo') applied by many of the spanish banks to their mortgage products.
Very simply, most mortgages appear to be linked to the Euribor, which is currently very low, (our mortgage should be Euribor +0.8%) - however, many mortgages also have a floor limit, preventing it from going any lower, for example, than 3%. A recent decision in the spanish courts would suggest that floor limits are illegal, although Solbank are suggesting to me that they are still waiting for a final judgement (they may or may nor be).
The impression I get is that the spanish banks won't have to refund overpayments, but it's not clear if any of them are implementing the judgement.
I'm going to ask my local solicitor for a view - if anyone has similar experiences I would welcome comments.
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