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What Do We Talk About When We Say Floor And Mortgage Clauses?

All at some point in our daily lives, whether in a conversation between friends, family or in the media, we have heard the words clause soil. But do we really know what it is about or what is behind it? By floor clause, it is understood the minimum interest that the variable interest rate that a consumer or a bank client pays for the mortgage loan contracted with a bank. According to studies conducted a third of the mortgages contracted in Spain included this clause between the agreed conditions. If you have problems with this, you can go to the specialists of the law firm Duran and Duran.

What Do We Talk About When We Say Floor And Mortgage ClausesIn Duran and Duran they help you eliminate the floor clause of your mortgage conditions and recover the money paid for it to the bank, since the Supreme Court in a sentence issued in May 2013 canceled these clauses provided in the mortgage contracts, forcing the Banks to return the money overcharged to customers as of the date of May 9, 2013, and to eliminate this condition of contracted mortgages. This judgment was also supported by a decision of the Court of Justice of the European Union, and we are awaiting its ruling on the total retroactivity of this clause, that is, its nullity and therefore the return of the amounts collected from the moment of the signature of the mortgage.

What Do We Talk About When We Say Floor And Mortgage ClausesThis was one of the conditions that most banks included when a client approached the bank in order to request financing through a mortgage loan operation for the purchase of a home, be it a flat, a commercial premises to install A business, or a single-family home, since without immediate liquidity or sufficient savings to meet the purchase amount, funding must be sought.

What Do We Talk About When We Say Floor And Mortgage ClausesMortgage loan terms

Among the offers made by banks there is a wide range of interest rates, both from the start of the loan and for the duration of the life of the loan. These differences can be reduced by means of a series of compensations demanded by the lender such as payroll direct debit, contracting life insurance, home, pension plans, credit cards, direct debit or services such as energy supply Electricity, water, gas, telephony, etc. So that the more linkage and more services contracted with the bank the interest rate is reduced by a small percentage, these compensations can be observed during the life of the loan operation with a reduction in interest rates.

What Do We Talk About When We Say Floor And Mortgage ClausesOne of the advantages of mortgage loans is the long term that can be chosen for repayment, reaching thirty years, so that it can be accommodated in such a way that the monthly installments are more bearable, but it also entails Its expenses since to be able to realize the mortgage one has to make an appraisal of the property and a series of insurances that are linked to the mortgage, as well as a double notary deed, one of acquisition of the property and another one of constitution of mortgage in favor of the banking entity.

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