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pete08
11-17-2009, 08:01 PM
I was surprised that my mortgage did not reduce on the 12 month review in
sept 2009.
Bank quoted the interest floor of 4.5%. ( hidden in the small print in spanish)
Has anybody had any success with having this floor reduced/removed ?

Lawbird Lawyer
11-18-2009, 10:33 AM
Dear Sir,

We've written quite a few articles on collar clauses:

Spain’s Senate Petitions Government to Suppress “Floor Clauses” (http://belegal.com/wordpress/spain%e2%80%99s-senate-petitions-government-to-suppress-floor-clauses/) - 23rd September 2009

10 Common Abusive Clauses in Spanish Mortgage Loans (http://www.marbella-lawyers.com/articles/showArticle/10-common-abusive-clauses-in-spanish-mortgage-loans) - 4th June 2009

Reduction in Mortgage Repayments Limited by Floor Clause (http://belegal.com/blog-by-antonio-flores/reduction-in-mortgage-repayments-limited-by-floor-clause/) - 18th March 2009

Many banks do not have collar clauses such as Banesto, Santander etc. I suggest you swap over to one of these that don't.

Yours faithfully,
Raymundo LarraĆ*n Nesbitt

magdi
10-27-2010, 03:26 PM
I was surprised that my mortgage did not reduce on the 12 month review in
sept 2009.
Bank quoted the interest floor of 4.5%. ( hidden in the small print in spanish)
Has anybody had any success with having this floor reduced/removed ?

Yes we had the same problem in april 2009, we went to attention of client first with our
bank but with no sucess. We took our complain to "THE bANK OF sPAIN" and after 6 months
waiting we finally won our case and are now paying current eribour.