I don’t have a floor clause, but I do have the IRPH, what can I do?

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Around 11% of mortgages taken out in Spain are referenced to the Mortgage Loan Reference Index (IRPH), an indicator that is applied to variable rate mortgages and that has been used instead of the Euribor with a clear disadvantage for the buyer, as it is almost always, and in recent years always, much higher.

In recent months, thousands of people have been affected by the so-called floor clause, which, was introduced in a devious way in mortgage contracts without transparency and sufficient information, and prevented those who took out the mortgage from benefiting from the fall in the Euribor, which is currently very low.

However, floor clauses – for which retroactivity is still being studied in Europe and which, if confirmed, as expected, will provoke a flood of new complaints – are not the only abuses in mortgage contracts.

It is in this context that mortgages referenced to the IRPH take on particular strength. Firstly because, like floor clauses, they can be declared null and void due to a lack of transparency in the contract and, secondly, because, as they are referenced to an index that is calculated using the simple average of the data provided by the financial institutions themselves with respect to the mortgages they grant, it is an index that can be easily manipulated.

For this reason, if in recent times you have seen that the mortgage on your home has not gone down, go to a lawyer. Perhaps it is a floor clause that is preventing you from benefiting from the Euribor or, perhaps, you are affected by the IRPH reference. Both cases are more than common, and the good news is that, in both cases, it is possible to declare them null and void and recover the money unduly charged by your financial institution. In fact, the banks have already returned the money to thousands of people affected.

Call us on 954 536 038 or 695 694 847 and we will answer all your questions free of charge.

Image by Sujin Jetkasetta Korn (Freedigitalphotos)


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