Door opened for a million mortgages in Spain on ‘abusive’ IRPH rate to be cancelled

Door opened for a million mortgages in Spain on ‘abusive’ IRPH rate to be cancelled

One of the top legal advisers in the European Union has said that about one million mortgages sold in Spain on a different type of rate to the standard Euribor can be subject to judicial review. The rate being questioned is known as the IRPH (mortgage loan reference index) and is an alternative offered to customers of banks when buying their property. It is a national average of the cost of mortgages over a period up to three years, meaning it is less variable than the standard Euribor. However, homeowners complain that while Euribor rates plummeted in recent years, the different way of calculating IRPH keeps their loans higher. Many […]

Top European court says homeowners in Spain can claim against banks if mortgage interest rates weren’t properly explained

Top European court says homeowners in Spain can claim against banks if mortgage interest rates weren’t properly explained

The European Court of Justice has given the green light to Spanish courts to rule against lenders if mortgages were sold using the ‘more complicated’ IRPH rate rather than the more usual Euribor. Around one million mortgage holders could benefit from the top court’s ruling as the IRPH rate (an average of market rates) didn’t drop as dramatically as the Euribor in recent years. The ECJ has upheld earlier judgements that say using the IRPH is only valid if the different way of calculating it is clearly explained in the contract. Spanish courts will now have to decide on a case by case basis if compensation is due from banks. FIND OUT […]

The UK’s departure from the European Union, the procedure and your rights in Spain under the Withdrawal Agreement

The UK’s departure from the European Union, the procedure and your rights in Spain under the Withdrawal Agreement

Brexit is the name given to the process of departure of the United Kingdom of Great Britain and Northern Ireland from the European Union. The UK’s exit from the EU took place on 31 January 2020 and the terms of the departure are defined in the Agreement on the withdrawal of the United Kingdom from the EU negotiated by both parties. The Withdrawal Agreement entered into force on 1 February 2020 and provides for an orderly departure of the UK from the EU. To this end, the Withdrawal Agreement foresees a transition or implementation period which expires on 31 December 2020. Residence rights are regulated in Title II of the […]

Mortgage floor clauses in Spain: Key aspects of the Supreme Court ruling

Mortgage floor clauses in Spain: Key aspects of the Supreme Court ruling

Spain’s Supreme Court, in a Judgment of May 9, declared the nullity of the floor clauses in the mortgages of certain banking entities due to lack of transparency. What is a floor clause? When you go to a bank to apply for a mortgage loan, you tend to analyse what interest rate (fixed or variable) is the one that may be most convenient when paying the bank for the different instalments. In the fixed-rate, the same instalment will always be paid from month to month. In the variable rate, the instalments to be paid usually consist of the application of a reference index set by the European Central Bank (normally […]

Door opened for a million ‘floor clause’ mortgages in Spain on ‘abusive’ IRPH rate to be cancelled

Door opened for a million ‘floor clause’ mortgages in Spain on ‘abusive’ IRPH rate to be cancelled

One of the top legal advisers in the European Union has said that about one million mortgages sold in Spain on a different type of rate to the standard Euribor can be subject to judicial review. The rate being questioned is known as the IRPH (mortgage loan reference index) and is an alternative offered to customers of banks when buying their property. It is a national average of the cost of mortgages over a period up to three years, meaning it is less variable than the standard Euribor. However, homeowners complain that while Euribor rates plummeted in recent years, the different way of calculating IRPH keeps their loans higher. Many […]

Spanish mortgage victory leaves British couple with €15,000 in their pockets thanks to bank compensation payout

Spanish mortgage victory leaves British couple with €15,000 in their pockets thanks to bank compensation payout

Once upon a time a happy English couple (let’s call them the Smiths) who worked very hard in Birmingham all their lives dreamed of buying a property in Spain. One day they decided they had ‘had enough of rain, beer and fish and chips’ and decided to come to Spain to change it for sun, sangria and paella. But they were not 100% sure about it… it was, after all, a big move in their lives, but you only live once, so they booked their flights to Spain. They fell in love with Spain at first glance and their people and agreed to go ahead with the purchase of a […]

European Court wades into Spain’s mortgage crisis

European Court wades into Spain’s mortgage crisis

With a ruling that left both banks and consumers claiming victory, Europe’s highest court waded into a legal dispute in March over allegedly unfair home mortgage plans Spanish banks used during a housing boom that imploded with the 2008 financial crisis. The European Court of Justice found that clauses Spanish banks used in adjustable interest rate mortgages may have been abusive. But it stopped short of issuing a blanket rejection of the mortgages and told Spanish courts to examine them on a case-by-case basis to see if consumers clearly understood what they were signing up for. Some housing advocates called the ruling a win in their long-running campaign against banks […]

Family reunification for foreigners in Spain

Family reunification for foreigners in Spain

Spanish immigration law recognises the right of foreigners legally resident in Spain to reunite their families. This article summarises the general conditions required to exercise this right. Who can reunite their family members? Foreigners who have been living legally in Spain for a year and have obtained authorisation to stay at least one more year. To reunite ascendants, the foreigner must be a longterm resident in the country. Those who can also reunite their family, without previous legal residence, include: holders of an EU long-term residence permit in another Member State of the European Union, holders of an EU blue card, or beneficiaries of the special regime for researchers. Which family […]

How can I get legal documents if I am illegally in Spain?

How can I get legal documents if I am illegally in Spain?

If you are in Spain without any type of permission, you could obtain it through ‘Arraigo’ permits based on extraordinary circumstances without going out of Spain. It is a benefit offered by our legislation to foreigners who meet certain conditions in order to acquire a residence and work permit, among them, the most important reasons are the following: 1. Social ties 2. Economic ties 3. Family ties 4. International protection and humanitarian reasons 1. PERMIT BASED ON SOCIAL TIES According to Spanish legislation any foreigner illegally established as a resident in Spain, can apply for a residence and work permit. The required periods of time are different according to the […]

BREXIT: All you need to know… but were afraid to ask!

BREXIT: All you need to know… but were afraid to ask!

Back in January 2020 the EU Council and the United Kingdom signed and ratified the Brexit Withdrawal Agreement, which contains the highlights regarding how the Brexit affects nationals of the parties who are living in the UK or in the EU territories. In general terms, the said agreement laid down a transition period whereby the things shall basically stay as they are, in order to enable people to make decisions and take measures on time. That is, the transition period buys time in order for those affected (EU citizens who want to stay in the UK and UK nationals who want to stay in the EU) to get the paperwork […]