Reclaiming set-up costs of Spanish mortgages

I've seen a lot of posts on Facebook about being able to reclaim set-up costs and mis-sold insurance on pre-2017 mortgages.

I think I may be eligible. Does anyone here have experience of this?

Yes, you may indeed be eligible to reclaim set-up costs or mis-sold insurance related to pre-2017 mortgages, especially if you were sold products like mortgage set-up fees, life insurance, or payment protection insurance (PPI) that were misrepresented or improperly sold.

Here’s a general overview of how it works:

• Mortgage Set-Up Fees: If you were charged excessive fees to arrange your mortgage, or if those fees were not properly explained, you might be able to claim them back. Some mortgage providers charged administration or arrangement fees that were deemed to be unfair, and the courts have ruled that some of these fees were mischarged.

• Mis-sold Mortgage Insurance (PPI or similar): If you were sold payment protection insurance (PPI) or other types of insurance (such as life insurance) that was not suitable for your needs, or if it was misrepresented to you (e.g., being told that it was mandatory when it wasn't), you might be entitled to a refund.

In addition to these, you should also check whether your mortgage includes a "cláusula suelo" (floor clause), which is a clause that sets a minimum interest rate that your mortgage could not fall below. Many mortgages with this clause were ruled unfair, and you may be entitled to a refund of the extra payments made as a result of this clause.

Also, consider reviewing if you paid for additional costs related to the mortgage that should have been covered by the bank, such as:

• Notary fees

• Registration fees

• Appraisal costs

• Administration or processing fees (gestoría)

These costs were often incorrectly passed onto the borrower, but Spanish courts have ruled that they should have been paid by the bank in many cases. You may be able to reclaim these fees if they were incorrectly charged.

Here’s what you can do:

1. Check Your Mortgage Documents: Review your mortgage agreement and related documents to see if there are any questionable fees or insurance policies that you did not agree to or that were not clearly explained.

2. Contact Your Lender: Reach out to your mortgage lender or insurance provider. Many lenders have dedicated teams that handle complaints about mis-sold products and overcharged fees. You can submit a formal complaint, explaining your situation and asking for a refund.

3. Use a Claims Management Company: If you’re unsure about handling it on your own, there are firms that specialize in helping people reclaim mis-sold insurance or excessive fees. They can help you assess your eligibility and guide you through the claims process.

4. Check for Time Limits: There may be time limits for making a claim, but since you mentioned a pre-2017 mortgage, it's possible that some of these claims are still valid. However, it’s important to act quickly to ensure you don't miss any deadlines.

5. Seek Legal Advice: If you need further help, consulting with a legal advisor who specializes in consumer rights or financial claims can provide you with more tailored advice based on your situation.

If you've seen similar cases in online communities, that’s a good sign that many others have successfully reclaimed funds. Make sure to follow through with your claim if you believe you're eligible.

Let me know if you'd like further guidance!