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Thread: Getting the Interest floor lowered

  1. #1
    Junior Member
    Join Date
    Nov 2009
    Posts
    1

    Default Getting the Interest floor lowered

    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 ?

  2. #2
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    Dear Sir,

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

    Spain’s Senate Petitions Government to Suppress “Floor Clauses” - 23rd September 2009

    10 Common Abusive Clauses in Spanish Mortgage Loans - 4th June 2009

    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

  3. #3
    magdi
    Guest

    Default

    Quote Originally Posted by pete08 View Post
    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.

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