El blog de Maria

New coming a bit late as I have been out of the office for several days! 

 That is the core of the recent Court Decission of our Spanish Supreme Court which declares null and void all interest clauses os mortgage contracts where client was not sufficiently informed.

This does not involve the devolution of already paid amounts

Average null cluse is of 3,12% which is contained in 30-40% of existing mortgage contracts in Spain. Euribor is currently at 0,55%.

Order EHA/2899/2011  on Transparency  and protection for Banks clients state that financial entities  must prove that they have informed clients on the existence of these limits before the signing of the mortgage deeds being the contrary against good financial practises and uses.  

Banks will have to prove that the information effort was performed through the binding offer,  clients´file in Bank,or any other document previous to the signing or mortgage contract before the Notary.

What about those mortgages on properties without licenses? Could these contract be considered null and void due to lack of valid guarantee, specially when same Bank funding the development is also offering mortgage to the final buyer?

"K  Logroño, La Rioja (18)", Logroño, La Rioja, Nort-east of Spain, by calafellvalo, at flickr.com