Comments on: Reduction in Mortgage Repayments Limited by Floor Clause http://belegal.com/blog-by-antonio-flores/reduction-in-mortgage-repayments-limited-by-floor-clause/ Thoughts about laws and regulations which affect foreigners in Spain Fri, 10 Feb 2012 18:55:55 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Antonio http://belegal.com/blog-by-antonio-flores/reduction-in-mortgage-repayments-limited-by-floor-clause/comment-page-1/#comment-3823 Antonio Thu, 19 Nov 2009 12:21:33 +0000 http://belegal.com/blog-by-antonio-flores/?p=164#comment-3823 Hello Emerging writer, Your bank manager is right, the French repayment system envisages low cuts on the overall montly payment as the reduction of the interest payment is compensated by a higher capital repayment. The bank manager will not be able to do anything about this other than give you an interest only period, so that you can repay less (or the opposite, an interest "holiday" so that you only pay capital). This will however require going to the Notary so sign new documents. Regards Hello Emerging writer,

Your bank manager is right, the French repayment system envisages low cuts on the overall montly payment as the reduction of the interest payment is compensated by a higher capital repayment. The bank manager will not be able to do anything about this other than give you an interest only period, so that you can repay less (or the opposite, an interest “holiday” so that you only pay capital). This will however require going to the Notary so sign new documents.

Regards

]]> By: emerging writer http://belegal.com/blog-by-antonio-flores/reduction-in-mortgage-repayments-limited-by-floor-clause/comment-page-1/#comment-3821 emerging writer Wed, 18 Nov 2009 22:40:33 +0000 http://belegal.com/blog-by-antonio-flores/?p=164#comment-3821 We've just been caught with this floor clause. I can't see any reference to it in any of our documentation. Also, for some reason that our bank manager cannot explain, although our interest payment has decreased from 6.625% to 3.0%, the part of the monthly payment that is not interest (capital replayment) has gone up considerably from the previous month. The bank manager says it is something to do with the French way of calculating the monthly repayments and he will get a better explanation for us. (we'll see. I worry when a bank manager doesn't know the answer) is it really worth threatening to move our business? Isn't that usually not cost effective? Thanks We’ve just been caught with this floor clause. I can’t see any reference to it in any of our documentation.
Also, for some reason that our bank manager cannot explain, although our interest payment has decreased from 6.625% to 3.0%, the part of the monthly payment that is not interest (capital replayment) has gone up considerably from the previous month. The bank manager says it is something to do with the French way of calculating the monthly repayments and he will get a better explanation for us. (we’ll see. I worry when a bank manager doesn’t know the answer)

is it really worth threatening to move our business? Isn’t that usually not cost effective?

Thanks

]]> By: » Spain’s Senate Petitions Government to Suppress “Floor Clauses” - The Lawbird Tribune http://belegal.com/blog-by-antonio-flores/reduction-in-mortgage-repayments-limited-by-floor-clause/comment-page-1/#comment-2770 » Spain’s Senate Petitions Government to Suppress “Floor Clauses” - The Lawbird Tribune Wed, 23 Sep 2009 15:29:26 +0000 http://belegal.com/blog-by-antonio-flores/?p=164#comment-2770 [...] 10 Common Abusive Clauses in Spanish Mortgage Loans and in Antonio’s blog post Reduction in Mortgage Repayments Limited by Floor Clause. [...] [...] 10 Common Abusive Clauses in Spanish Mortgage Loans and in Antonio’s blog post Reduction in Mortgage Repayments Limited by Floor Clause. [...]

]]> By: Flooring http://belegal.com/blog-by-antonio-flores/reduction-in-mortgage-repayments-limited-by-floor-clause/comment-page-1/#comment-1494 Flooring Thu, 30 Apr 2009 19:13:13 +0000 http://belegal.com/blog-by-antonio-flores/?p=164#comment-1494 Te problem is the banks got us in this trouble, they got bailed out by us and yet it is us that is still paying when the do not follow the base rate with their mortgages yet do with their savings accounts Te problem is the banks got us in this trouble, they got bailed out by us and yet it is us that is still paying when the do not follow the base rate with their mortgages yet do with their savings accounts

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